The S&P500 index (SPX) rose rapidly and almost hit its 1D MA50 (blue trend-line), which is the current Resistance, since our last post:
The long-term pattern remains a Channel Down since the All Time Highs (ATH), so the trend remains bearish towards the 3810 Support and quite possibly the -0.236 Fibonacci extension as a Lower Low. The fact that the price is struggling to break the 1D MA50, further strengthens this notion.
Even a break above the 1D MA50, won't be enough to turn the price bullish long-term, only on the short-term towards the 0.618 Fibonacci retracement level, which was the Resistance level during the January 24 rebound. See how the 1D RSI is currently on similar levels.
A break-out buy signal wouldn't be if the price closes above the 1D MA200 (orange trend-line), with a short-term target the 4640 Resistance (and March 29 High). Above the level, we can claim that the index has restored the long-term bullish trend.
Nice work as always, but in my humble opinion (as a total newbie) is very dificult to even think about a possible come back to the bullish trend knowing the FED's plans for this year and the current inflation in USA and the rest of the world. And don't forget the desastrous economic situation in China who is holding back (for the moment) the increase in the production prices, once applied to the export market that will increase prices (and inflation) all around the world. S&P, Nasdaq, Russel and all the rest of indexes will continue to fall during this year without any doubt, Just my opinion. And sorry for my english.
mastershark
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💥💥💥
JoeChampion
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Amazing idea, i think that stocks are going to continue bearish!
RLinda
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Thanks for sharing. Nice job)
UnknownUnicorn15614419
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Agree with you!
Investroy
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Good illustration, buddy
Solldy
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Not the most familiar approach you take, but it was nice to see how you think through the publication. Thanks for your work, absolutely supportive!