The S&P 500 has climbed for seven straight months. But it may face some near-term challenges as September gets underway.
The main pattern on today’s chart is the resistance line running along the highs since mid-April. Notice how prices have stalled once again at this area.
Next, consider the type of candles at the top of the range: August 31 and September 1 closed well below their highs of the day. The next two sessions had spinning tops, followed by another solid bar on Tuesday. That suggests a lack of conviction/price acceptance at the highs.
Third, MACD is turning negative. The 8-day exponential moving average (EMA) has also started to fall (see our custom script Moving Average Speed). Notice how dips in the 8-day EMA preceded market drops at other times like mid-August and mid-July.
Finally, there’s something of a news vacuum with few major events (or earnings) before the Federal Reserve meeting on September 22. That could potentially keep buyers on the sidelines and allow a pullback if sellers get active.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
The main pattern on today’s chart is the resistance line running along the highs since mid-April. Notice how prices have stalled once again at this area.
Next, consider the type of candles at the top of the range: August 31 and September 1 closed well below their highs of the day. The next two sessions had spinning tops, followed by another solid bar on Tuesday. That suggests a lack of conviction/price acceptance at the highs.
Third, MACD is turning negative. The 8-day exponential moving average (EMA) has also started to fall (see our custom script Moving Average Speed). Notice how dips in the 8-day EMA preceded market drops at other times like mid-August and mid-July.
Finally, there’s something of a news vacuum with few major events (or earnings) before the Federal Reserve meeting on September 22. That could potentially keep buyers on the sidelines and allow a pullback if sellers get active.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
