S&P Bulls Hold Strong, But Is a Market Cooldown Coming?

21 thg 10

Last week wasn't particularly remarkable. Despite two bearish attacks (on Tuesday and Thursday), buyers still managed to push the market to a new historical high. It was somewhat concerning that they couldn’t sustain the high for even an hour after the open, but since the bearish movement didn’t gain momentum on Friday, the bulls still have the upper hand. We may see some consolidation in the upcoming weeks, as there are signs that the rally is approaching exhaustion (weakening of upthrust, weekly RSI entering the overbought zone, weakness in XLK). However, this market has repeatedly demonstrated its resilience and ability to exceed expectations.

The long-term outlook remains bullish, but given these signals, it would be prudent for buyers to downsize their positions and refrain from selling PUTs.

Mind TSLA report on Wednesday as it can cause some volatility and act as a trigger.

23 thg 10

Ghi chú

Weekly consolidation has started. All major sectors are weak except for XLF, which still holds