The world’s most important stock market index, the S&P 500, rose again last week, despite three weeks ago making the first “death cross” / “bear cross” (50 day moving average crosses below the 200-day moving average) seen since the coronavirus shock of March 2020.
The price closed Friday very slightly higher on the week, just a little way back above the 200-day moving average, but still below the key resistance level marked on the weekly price chart below at 4596. Note that the weekly candlestick is a pin bar rejecting a resistance level, which is usually a bearish sign. There are also prevailing signs of consolidation. I see the US stock market as an uncertain trade right now due to signs of deteriorating consumer demand and a tightening monetary policy from the Federal Reserve. Long day trades on strong short-term momentum may be the best strategy here over the coming week.
The price closed Friday very slightly higher on the week, just a little way back above the 200-day moving average, but still below the key resistance level marked on the weekly price chart below at 4596. Note that the weekly candlestick is a pin bar rejecting a resistance level, which is usually a bearish sign. There are also prevailing signs of consolidation. I see the US stock market as an uncertain trade right now due to signs of deteriorating consumer demand and a tightening monetary policy from the Federal Reserve. Long day trades on strong short-term momentum may be the best strategy here over the coming week.