Hello everyone, as we all know the market action discounts everything :)
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A Bullish trend started in November where the SPX index started moving up in an Ascending Channel and the trend kept giving Bullish signals where we kept getting higher highs and higher lows.
The S&P 500 jumped to record closes for a third straight day on Thursday, with mega-cap technology stocks driving the market higher as investors warmed to jobs data showing a steady U.S. economic recovery.
The index price is still not showing any signs of weakness and most likely the Index movement for the next period of time will be like this :
Scenario 1 :
The Index price is at 4429.29 trendings near the first resistance level at 4460.08 and it's gonna try to breakout of that resistance line if the Bulls were able to keep control then we could be seeing the S&P going even further and hitting the resistance levels at 4483.64 or even 4527.08.
Scenario 2 :
If the bulls try to make a move now then we will see a drop in the price that's gonna be headed to near the first support line at 4393.08, where the Bulls and the Bears will battle over control of the trend, The bulls are most likely to win since we have no signs of a reversal yet and the result will bounce the price back up to near the resistance level at 4460.08.
Technical indicators are showing this :
1) The S&P 500 index is trending above the 5 10 20 50 100 and 200 MA and EMA (Bullish Sign)
2) The MACD is above the 0 line showing that the market is in a Bullish state, With a positive crossover between The MACD line and The Signal line.
3) The STOCH is in the overbought zone and has been trending there for the last 10 days, With a positive crossover between %K (98.94) and %D (95.92).
4) The Ultimate Oscillator is at 63.704 giving a Bullish sign
Support & Resistance points :
support Resistance
1) 4393.08 1) 4460.08
2) 4349.64 2) 4483.64
3) 4326.08 3) 4527.08
Fundamental point of view :
The IGCS gauge (IG Client Sentiment Report) implies that 31% of retail investors are net-long the S&P 500. Upside exposure has increased by 1.62% and 9.07% over a daily and weekly basis respectively. The fact that traders are net-short hints that prices may continue rising. The combination of this and recent changes in sentiment are offering a stronger bullish-contrarian trading bias.
All three main equity benchmarks closed higher Thursday and the Dow and S&P 500 booked a third straight record finish after fresh labor-market data provided insight on the pace of the recovery. The moves for stocks came even as a reading for wholesale inflation came in hotter than expected.
the S&P 500 index SPX, +0.30% advanced 0.3% to 4,460, led by gains in health care XLV, +0.79% and technology XLK, +0.57%. The S&P 500 closed at records in three consecutive sessions for the first time since March 15. According to Marketwatch
This is my personal opinion done with technical analysis of the market price and research online from fundamental analysts for The Fundamental point of view, not financial advice.
If you have any questions please ask and have a great day !!
Thank you for reading.
_________________________________Make sure to Like and Follow if you like the idea_________________________________
A Bullish trend started in November where the SPX index started moving up in an Ascending Channel and the trend kept giving Bullish signals where we kept getting higher highs and higher lows.
The S&P 500 jumped to record closes for a third straight day on Thursday, with mega-cap technology stocks driving the market higher as investors warmed to jobs data showing a steady U.S. economic recovery.
The index price is still not showing any signs of weakness and most likely the Index movement for the next period of time will be like this :
Scenario 1 :
The Index price is at 4429.29 trendings near the first resistance level at 4460.08 and it's gonna try to breakout of that resistance line if the Bulls were able to keep control then we could be seeing the S&P going even further and hitting the resistance levels at 4483.64 or even 4527.08.
Scenario 2 :
If the bulls try to make a move now then we will see a drop in the price that's gonna be headed to near the first support line at 4393.08, where the Bulls and the Bears will battle over control of the trend, The bulls are most likely to win since we have no signs of a reversal yet and the result will bounce the price back up to near the resistance level at 4460.08.
Technical indicators are showing this :
1) The S&P 500 index is trending above the 5 10 20 50 100 and 200 MA and EMA (Bullish Sign)
2) The MACD is above the 0 line showing that the market is in a Bullish state, With a positive crossover between The MACD line and The Signal line.
3) The STOCH is in the overbought zone and has been trending there for the last 10 days, With a positive crossover between %K (98.94) and %D (95.92).
4) The Ultimate Oscillator is at 63.704 giving a Bullish sign
Support & Resistance points :
support Resistance
1) 4393.08 1) 4460.08
2) 4349.64 2) 4483.64
3) 4326.08 3) 4527.08
Fundamental point of view :
The IGCS gauge (IG Client Sentiment Report) implies that 31% of retail investors are net-long the S&P 500. Upside exposure has increased by 1.62% and 9.07% over a daily and weekly basis respectively. The fact that traders are net-short hints that prices may continue rising. The combination of this and recent changes in sentiment are offering a stronger bullish-contrarian trading bias.
All three main equity benchmarks closed higher Thursday and the Dow and S&P 500 booked a third straight record finish after fresh labor-market data provided insight on the pace of the recovery. The moves for stocks came even as a reading for wholesale inflation came in hotter than expected.
the S&P 500 index SPX, +0.30% advanced 0.3% to 4,460, led by gains in health care XLV, +0.79% and technology XLK, +0.57%. The S&P 500 closed at records in three consecutive sessions for the first time since March 15. According to Marketwatch
This is my personal opinion done with technical analysis of the market price and research online from fundamental analysts for The Fundamental point of view, not financial advice.
If you have any questions please ask and have a great day !!
Thank you for reading.