Longer-term evidence has hinted for several months that a major top could be developing for US stocks.
The SPX all-time high was made 09/02/21, however so far the decline has been slow - only about 5% down at the 10/01/21 low.
My more extensive writings note several factors that suggest the current drop could only be a correction within an ongoing bull market.
If a correction is forming 10/08/21 could be the termination point. That day is the release of the important US Payroll report.
There could be one more move down. If the SPX goes below the 10/01/21 bottom these are the indicators to watch.
The SPX 200 - day Moving Average (MA), a marginal break of that line could be a buy signal.
Also watch the Daily RSI + MA or the standard RSI. This indicator on the daily scale has not reached the oversold zone - below 30% since March of 2020. If
RSI goes below 30% it could be a buy signal.
Mark
The SPX all-time high was made 09/02/21, however so far the decline has been slow - only about 5% down at the 10/01/21 low.
My more extensive writings note several factors that suggest the current drop could only be a correction within an ongoing bull market.
If a correction is forming 10/08/21 could be the termination point. That day is the release of the important US Payroll report.
There could be one more move down. If the SPX goes below the 10/01/21 bottom these are the indicators to watch.
The SPX 200 - day Moving Average (MA), a marginal break of that line could be a buy signal.
Also watch the Daily RSI + MA or the standard RSI. This indicator on the daily scale has not reached the oversold zone - below 30% since March of 2020. If
RSI goes below 30% it could be a buy signal.
Mark
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.