Six days ago, we warned about the potential “bear market rally” in the SPX. Since then, the SPX has broken above the sloping resistance and gained 5%. Despite that, we still maintain a bearish notion of the U.S. stock market. We expect the bear market rally to be short-lived and weakness to return.
Illustration 1.01
The picture above shows the sloping resistance and breakout we warned about in our last post on SPX.
Technical analysis - daily time frame
RSI, Stochastics, and MACD are bullish. DM+ and DM seem to want to perform a bullish crossover; if successful, it could further bolster the bullish case. Overall, the daily time frame is bullish.
Technical analysis - weekly time frame
RSI is bullish; however, it did not break the bearish structure. MACD and Stochastics stay bearish. The same applies to DM+ and DM-. Overall, the weekly time frame remains bearish.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
Illustration 1.01
Technical analysis - daily time frame
RSI, Stochastics, and MACD are bullish. DM+ and DM seem to want to perform a bullish crossover; if successful, it could further bolster the bullish case. Overall, the daily time frame is bullish.
Technical analysis - weekly time frame
RSI is bullish; however, it did not break the bearish structure. MACD and Stochastics stay bearish. The same applies to DM+ and DM-. Overall, the weekly time frame remains bearish.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
