SPX will soon touch the buy zone near 3500-3700.
Marked by green rectangle in the chart, this is very crucial zone for the following reasons:
1. This zone is supported by long-term, uptrend channel.
2. It is also supported by short-term, downtrend channel.
3. Market has already recovered from this zone once.
Here are also fundamental reasons to believe why this is an important zone.
1. US Inflation, which peaked at 9.1% in Jun-22, is now reversing. It dropped to 7.1% on Nov-22 and is expected to continue downtrend. However, caution is advised that the figure of 7.1% is still alarming.
2. Oil is witnessing a downtrend. It is almost halfway ($75 a barrel) from the peak of $130 a barrel.
I don't see the market flying high from the buy point, but profit is possible for swing traders and accumulation for investors.
Marked by green rectangle in the chart, this is very crucial zone for the following reasons:
1. This zone is supported by long-term, uptrend channel.
2. It is also supported by short-term, downtrend channel.
3. Market has already recovered from this zone once.
Here are also fundamental reasons to believe why this is an important zone.
1. US Inflation, which peaked at 9.1% in Jun-22, is now reversing. It dropped to 7.1% on Nov-22 and is expected to continue downtrend. However, caution is advised that the figure of 7.1% is still alarming.
2. Oil is witnessing a downtrend. It is almost halfway ($75 a barrel) from the peak of $130 a barrel.
I don't see the market flying high from the buy point, but profit is possible for swing traders and accumulation for investors.