The S&P 500, Potential Top-Retest Incoming!

Hello Community,

the year of 2022 is coming to an end and the markets are showing important developments that are necessary to consider when moving forward into 2023 out of a trading and investing perspective. Therefore a main stock index like the S&P 500 is showing us crucial signs on what to expect in the financial markets within 2023. In this case, I have detected major technical factors that will alter the whole interface of the market in the next time. When considering these dynamics it has to be mentioned that the inflation which peaked within the last month has calmed down and is decreasing more, if this dynamic holds on there is a higher likelihood possibility that positive sentiments will have a solid potential to accelerate within the market.

As when looking at my chart now, from a technical perspective, we can watch where the index is building this main descending channel formation which is a crucial formation to confirm the trend direction of the underlying asset. Within this formation, the index is also developing a coherent wave count with the waves A to D already completed and a descending wedge formation is also about to complete once the wave count is coming to the end-stages and finalizes the wave E within the count. If the index shows up with the ability to complete the formation and increase volatility finally leading to a breakout above the upper boundary of the channel this will show the setup for the index to test the highs lastly seen in January 2022 again. Once the index reaches these levels it will be crucial if it will be confirmed as resistance or if the index has the ability to breakout above, either way, will lead to further considerations to be made and in the bigger picture to a bull flag or a double top for the index to be formed.

In this manner, thank you everybody for watching. Let's move forward together.

The information provided is only educational and should not be used to take action in the markets.

Comment:

The S&P500 ETF has completed the Descending-Triangle-Formation appropriately in the schedule.

The Descending-Triangle-Formation has been completed with a strong breakout above the Upper-Boundary, the EMA and the prior resistance.

Comment:

ANALYSIS UPDATE: The S&P 500 had the great potential to boil up an massive breakout and emerge with the necessary bullish volatility forming one higher after the other.

The RSI Tripple Bottom is also supporting this bullishness and the targets mentioned are active and likely to be reached in the next times.

Comment:

NEWS UPDATE: The easing in U.S. CPI is confirming a strong demand increase and has the potential to convert into the necessary capital market flows transforming into a bullish sentiment and real bullish price action.

Comment:

ANALYSIS UPDATE: The SPX has moved forward with the bullish momentum acceleration within the broadening-wedge breakout indication.

The SPX since accelerating bullish momentum is aiming for the final target-zones to be reached within the upcoming times.