After S&P 500 has had the ATH (2.872) it has crashed and then rebounced on the swing trend line.
Sure, a lot of the movement is caused by the actual policy of Mr. Trump, another cause is the discussion if interest rates will rise higher than expected. The correction had to take place one day or another.
The quick recover seemed to show that there is enough strength in the market to pull the stock to higher prices.
But with the sudden crash the trend of the indicators have changed.
RSI fell back from overbought to neutral. The recovering didn´t change much.
DI+ fell to zero, DI- rose higher and the momentum is actually declining. A closer look shows that market expectations are potentially negative.
Perhaps we´ll see some correction in near future, probably testing the lower limit of the ascending long term trend channel, where we find several swing trend lines.
Sure, a lot of the movement is caused by the actual policy of Mr. Trump, another cause is the discussion if interest rates will rise higher than expected. The correction had to take place one day or another.
The quick recover seemed to show that there is enough strength in the market to pull the stock to higher prices.
But with the sudden crash the trend of the indicators have changed.
RSI fell back from overbought to neutral. The recovering didn´t change much.
DI+ fell to zero, DI- rose higher and the momentum is actually declining. A closer look shows that market expectations are potentially negative.
Perhaps we´ll see some correction in near future, probably testing the lower limit of the ascending long term trend channel, where we find several swing trend lines.