Index approaching the descending trendline, bearish??
The SP500 index trades above the lower time frame - ascending trendline and the 50 EMA of the 4 hour time frame. Short term bullish remains intact as the prior week was relative quiet as we have a slowdown in momentum as mentioned in our previous post: "We are likely to see a decrease in momentum which can potentially lead to a decline in price."
In the high time frame, we can observe that price is slowly trading towards the descending trend line. Even if price continues to trade sideways during this period, price itself will slowly approach the descending trendline due to time factor (trend line sloping downwards). However, it is unlikely that price will continue its sideways movement as this week we have the PPI release of both US and EU nations.
Expect volatility.
In the high time frame, we can observe that price is slowly trading towards the descending trend line. Even if price continues to trade sideways during this period, price itself will slowly approach the descending trendline due to time factor (trend line sloping downwards). However, it is unlikely that price will continue its sideways movement as this week we have the PPI release of both US and EU nations.
Expect volatility.
