The #SP500 diverged 61% from the trend it had referenced since 1940.
When we look at such divergences in history, we see that the index has returned to the reference trend.
The beginning of this reversal is usually confirmed by a close below the SMA9 on the 3-month timeframe. This level is currently displayed as $4174.
In a possible bear scenario, EMA60 or $2651 will guide us for the priority return level. Finally, EMA120, which is already at the same level as the reference trend level, will act as the last support.
In addition, looking at the SP500 index in the daily time frame, the McClellan Oscillator, which has been working very successfully since 1900s, turned negative last week.
However, another factor that can contribute to my analysis is that the monetary and fiscal policies made by HSBC today are not compatible with the bond and stock markets, and that the current recession will go further.
When we look at such divergences in history, we see that the index has returned to the reference trend.
The beginning of this reversal is usually confirmed by a close below the SMA9 on the 3-month timeframe. This level is currently displayed as $4174.
In a possible bear scenario, EMA60 or $2651 will guide us for the priority return level. Finally, EMA120, which is already at the same level as the reference trend level, will act as the last support.
In addition, looking at the SP500 index in the daily time frame, the McClellan Oscillator, which has been working very successfully since 1900s, turned negative last week.
However, another factor that can contribute to my analysis is that the monetary and fiscal policies made by HSBC today are not compatible with the bond and stock markets, and that the current recession will go further.