TraderFromTheNorth

(8/17/22) S&P 500 Update - End of the rally soon?

Short
SP:SPX   S&P 500 Index
The S&P 500 has been rallying for over a month now. This rally was not unforeseen. The market had fallen very deep and a correction was overdue. However, we are currently approaching the 200-Day Moving Average and a key Resistance Zone . This is likely where we will start to see things slow down and likely where this rally ends. If buyers hold up, then it is likely to stay SIDEWAYS in a range between 4200 - 4400. If not, then it will likely begin the next move DOWN to a new low.

*** 2022 is a BEAR market. I don't believe we've seen the bottom yet. Every rally will likely end in a bull trap and push back down further. When conditions change, then we will know that a bottom is in. Conditions have not changed yet. I will update when they do.

*** In 2021, we had an insane market rally. This was largely due to money printing, Stimulus checks, not having to pay rent/mortgage, PPP loans, Student Loan forbearance, low-interest rates, etc. These were all unsustainable situations. This year, we are in a total opposite scenario. 2021's major theme was "To The Moon"... but 2022's major theme will be "Back To Earth". Safe trading & safe investing!

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