Is the working hypothesis now that we have passed the bottom of the stock market? It's a thought I've had the last 2-3 weeks that probably others have as well. For me, it's based on technical findings. The equity market is up to six months ahead of the real economy. That's the sum of a collective market understanding. If correct, the market also expects the recession to be more technical than noticeable.
The S&P 500 has been on a declining trend, but from mid-June there is an increase that forms a REC where the small peaks and bottoms follow patterns to a rising trend if one looks at the associated volume.
Index has passed SMA 50 and is on track to passe SMA 100. There is a marginal break up through the attic of the trend, the REC and resistance around 4100.
On Volume Balance OVB is rising from 22 days back.
RSI 21 is 60 and ascending.
Oscillators and MA stand on buy from one day to a month.
Consider index technically cautious positive medium long time.
Remember you need do your own research and assessment before buying and selling.
Sources: Trading View.
The S&P 500 has been on a declining trend, but from mid-June there is an increase that forms a REC where the small peaks and bottoms follow patterns to a rising trend if one looks at the associated volume.
Index has passed SMA 50 and is on track to passe SMA 100. There is a marginal break up through the attic of the trend, the REC and resistance around 4100.
On Volume Balance OVB is rising from 22 days back.
RSI 21 is 60 and ascending.
Oscillators and MA stand on buy from one day to a month.
Consider index technically cautious positive medium long time.
Remember you need do your own research and assessment before buying and selling.
Sources: Trading View.
Indicators in technical analysis are almost all based on price or index value etc., therefore volume is very important in a technical analysis as volume is independent of price. Volume can support, be neutral or weaken a price movement.
In an upward trend, the price top should correspond to the volume top and price bottom correspond to the volume bottom. Otherwise, volume does not support the trend.