Last week’s move on the S&P 500 invalidating our daily rising wedge pattern, requiring us to revise. There is no doubt about it, the S&P 500 (along with other U.S. markets are rising.) However, we are still bearish as the patterns offer higher probability then pure price movement. Positive U.S and China news along with U.S. Fed decision to keep the plans to cut rates later this year is inspiring the bullish rallies.
The S&P 500 closed up +2.06% for the week, showing quite a bit of strength behind it. We still carry a bearish outlook on the longer term, however, we are cautious in this market due to its sentiment. After revamping our outlook we have a short term downside target of $2850.
THE PLAY: Sidelined until we see bearish candle patterns to show us S&P 500 weakness.
The S&P 500 closed up +2.06% for the week, showing quite a bit of strength behind it. We still carry a bearish outlook on the longer term, however, we are cautious in this market due to its sentiment. After revamping our outlook we have a short term downside target of $2850.
THE PLAY: Sidelined until we see bearish candle patterns to show us S&P 500 weakness.