Bullish momentum is slowing down a bit

The SPX has remained relatively stable since our previous update, trading between $5,000 and $5,100. In the meantime, its bullish momentum slightly decreased (reflected in the declining ADX on the daily chart), and Stochastic, MACD, and RSI remained bullish. In addition to that, the VIX dropped but has not distorted the structure with higher highs and higher lows. Overall, the SPX remains bullish, but caution is still reasonable as the Fear and Greed Index progresses higher.

Illustration 1.01

Illustration 1.01 displays the daily chart of VIX, which has declined since our previous update. However, it has not fallen below the lower trendline that connects troughs.

Technical analysis gauge
Daily time frame = Bullish
Weekly time frame = Bullish
*The gauge does not necessarily indicate where the market will head. Instead, it reflects the constellation of RSI, MACD, Stochastic, DM+-, ADX, and moving averages.

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DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor or any other entity. Therefore, your own due diligence is highly advised before entering a trade.