S&P500 currently in positive territory, which could see long investors having a bit of a sigh of relief. I would however monitor the whole trading day, as any turnaround today, could see the index break below the parallel channel at 3450. Should we see a break and close below 3450, could see the $SPX test the 21-day Exponential Moving Average (EMA) at 3429. Should we break below the 21-day EMA could see us test the 50-day EMA at 3319 points.
The 14-day RSI just moved out of Extreme Overbought territory, but still far from oversold.
I would hold off on any long positions for now and will personally be waiting for the index level to get closer to the 200-day EMA.
The 14-day RSI just moved out of Extreme Overbought territory, but still far from oversold.
I would hold off on any long positions for now and will personally be waiting for the index level to get closer to the 200-day EMA.
Comment:
As it currently stand, best case scenario for long investors seems now that they hope 3319 will hold up today.