Or is this profit-taking ahead of year-end rebalancing?
1. US500 has reclaimed multiple EMAs, but price is still rotating around them—signaling range conditions and a wait for a clear break. With price hovering near the range top, the pullback is possible to extend consolidation or even shift to downtrend.
2. Failure to clear 6700 risks a roll-over beneath the EMAs toward 6500 support.
3. However, a decisive break/close above the 6700 swing high would confirm upside continuation and reopen the uptrend.
4. Equities investors paused ahead of big earnings and a delayed inflation print that could drive moves later this week. Markets were still nursing losses from bank-stress jitters, though solid U.S. regional bank results briefly calmed volatility.
5. Goldman Sachs said hedge funds sold U.S. equities at the fastest pace since early April, led by shorts in Macro Products and single names. U.S. ETF short interest saw its biggest jump in 5+ months, ending a seven-week net-buying streak.
6. Therefore, the failure to make a new high may signal profit-taking pressure, and the price could fall further as we approach year-end.
Analysis by: Krisada Yoonaisil, Financial Markets Strategist at Exness
1. US500 has reclaimed multiple EMAs, but price is still rotating around them—signaling range conditions and a wait for a clear break. With price hovering near the range top, the pullback is possible to extend consolidation or even shift to downtrend.
2. Failure to clear 6700 risks a roll-over beneath the EMAs toward 6500 support.
3. However, a decisive break/close above the 6700 swing high would confirm upside continuation and reopen the uptrend.
4. Equities investors paused ahead of big earnings and a delayed inflation print that could drive moves later this week. Markets were still nursing losses from bank-stress jitters, though solid U.S. regional bank results briefly calmed volatility.
5. Goldman Sachs said hedge funds sold U.S. equities at the fastest pace since early April, led by shorts in Macro Products and single names. U.S. ETF short interest saw its biggest jump in 5+ months, ending a seven-week net-buying streak.
6. Therefore, the failure to make a new high may signal profit-taking pressure, and the price could fall further as we approach year-end.
Analysis by: Krisada Yoonaisil, Financial Markets Strategist at Exness
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.