The S&P 500 has made an amazing recovery from what looked like a falling knife. The market has been completely propped up by monetary and fiscal policies and is basically on life support right now.
I don't think I need to explain the disconnect between wall street and main street and for anyone who doesn't realize the financial situation we are in needs to get a sense of reality for what is about to come.
There is potential for a gap fill and a retest of all time highs. This upcoming week, we have earnings reports from a few major tech stocks that have kept this market afloat so far. In my opinion, I think this is a perfect opportunity for these stocks to have a rally only to leave millions of retail investors fleeing the market or letting their assets be devalued for a loss when the super rich dump their assets. We could be witnessing one of the largest transfers of wealth in history. The rich get richer while the poor get poorer and left with no jobs or income to provide for their families. Quite disgusting in my opinion.
Back to the chart, we are currently sitting right on the 21 EMA and still within the trend lines (even though the trends are very choppy, we are still in them no matter how you draw it). There looks like there could be a MACD crossover OR a tap, both of which would be very bearish OR very bullish. RSI divergence isn't always the most reliable thing to judge near term movements, but long term divergences ultimately lead to pullbacks. Volume looks to be weak right now.
A major case for the bulls would be a gap fill and run-up to all-time highs. This could result in a MACD crossover on the monthly chart which would be very very bullish and signal several months of rallying ahead.
I've been reducing my exposure to the market and buying gold to hedge against potential inflation. It is not a matter of if at this point, it is a matter of when. Manage the risk, and your wealth will be preserved.
As always, do your own research and formulate your own theories. I am not a financial advisor and this is not financial advice. Good Luck!
I don't think I need to explain the disconnect between wall street and main street and for anyone who doesn't realize the financial situation we are in needs to get a sense of reality for what is about to come.
There is potential for a gap fill and a retest of all time highs. This upcoming week, we have earnings reports from a few major tech stocks that have kept this market afloat so far. In my opinion, I think this is a perfect opportunity for these stocks to have a rally only to leave millions of retail investors fleeing the market or letting their assets be devalued for a loss when the super rich dump their assets. We could be witnessing one of the largest transfers of wealth in history. The rich get richer while the poor get poorer and left with no jobs or income to provide for their families. Quite disgusting in my opinion.
Back to the chart, we are currently sitting right on the 21 EMA and still within the trend lines (even though the trends are very choppy, we are still in them no matter how you draw it). There looks like there could be a MACD crossover OR a tap, both of which would be very bearish OR very bullish. RSI divergence isn't always the most reliable thing to judge near term movements, but long term divergences ultimately lead to pullbacks. Volume looks to be weak right now.
A major case for the bulls would be a gap fill and run-up to all-time highs. This could result in a MACD crossover on the monthly chart which would be very very bullish and signal several months of rallying ahead.
I've been reducing my exposure to the market and buying gold to hedge against potential inflation. It is not a matter of if at this point, it is a matter of when. Manage the risk, and your wealth will be preserved.
As always, do your own research and formulate your own theories. I am not a financial advisor and this is not financial advice. Good Luck!