SPX500 further rise. In my previous analyzes, I indicated that I expect a further rise in the price movement of the SP500. This is primarily based on the recognition that two fractals could be identified on the chart. Both fractals are accumulation fractals. What is interesting is that they move in an ascending band. Therefore, wave sequences valid for accumulation motion can be used. The ATR axis (purple dashed line) is also visible. The second fractal is clearly ascending. This means that the ATR value measured behind the price movement is constantly increasing. This can be an upward force in price movements. Although it should be noted that for the time being, the ascent rate of the SP500 is declining. This causes divergence in other indicators, such as RSI indicators. But in my opinion, this can be misleading because now price movement can step up from an accumulation band, which can override the false divergence picture. That’s why I’m definitely in a long position. Target price: 4353usd
@Captain_Walker, In my opinion, we can see a "healthy rise." The purple line in the image indicates the rising daily ATR value. It can be seen that the movement of the SP500 follows it almost exactly in parallel. In these cases, if I think like a daytrader, it is enough to choose the previous day's minimum value as the stop level. I myself am a longer term investor. I have been sitting in a long position for many months.
fatboy007
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as usual , very informative analyses. but system i used for little over decade , final rise for this year , is not due until 19.4.21 , so inspect to test your bottom line of box i.e. 3860 area, as bear minimum 3960 is most likely
meszaros
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@fatboy007, Thanks for the post. Yes. I agree with you. Currently, the SP500 is moving in a rather uncertain area. Two very opposite signals appeared. One is accumulation, which projects additional movement forward, and RSI divergence, which is known to be a trend reversal signal. Therefore, it is difficult to point a definite direction in the coming weeks.