SP500 : FAILURE BELOW 5000PTS
- The market trades inside a bullish channel since beginning 2024. The mid-term trend is bullish.
- However, since a new all-time high registered above the 5,000.0pts mark 2 days ago, short-seller seem to have taken control of the market as prices quickly returned to their first support level around 4,970.0pts.
This short-term bearish price action can be explained by the fact that some investors may have been tempted to take some profits out following a sharp rally that drove the market to record highs, an uncharted territory.
Prices still trade within the bullish channel while the DMI indicator doesn't show any bearish threat to come.
However, the evolution of the Stochastic indicator may indicate a break-out of the bullish trendline, while the chart pattern given by the last combination of candles can be seen as an "evening star".
- This is a tricky situation to assess from a technical standpoint. The bullish trend remains valid so far, but a break-out of the 4,970.0pts support level could quickly lead the market lower towards 4,845.0pts, 4,705.0pts and even 4,600.0pts by extension.
The information provided does not constitute investment research. The material has no been prepared in accordance with the legal requirements designed to promote the independence of investment research and such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
- However, since a new all-time high registered above the 5,000.0pts mark 2 days ago, short-seller seem to have taken control of the market as prices quickly returned to their first support level around 4,970.0pts.
This short-term bearish price action can be explained by the fact that some investors may have been tempted to take some profits out following a sharp rally that drove the market to record highs, an uncharted territory.
Prices still trade within the bullish channel while the DMI indicator doesn't show any bearish threat to come.
However, the evolution of the Stochastic indicator may indicate a break-out of the bullish trendline, while the chart pattern given by the last combination of candles can be seen as an "evening star".
- This is a tricky situation to assess from a technical standpoint. The bullish trend remains valid so far, but a break-out of the 4,970.0pts support level could quickly lead the market lower towards 4,845.0pts, 4,705.0pts and even 4,600.0pts by extension.
The information provided does not constitute investment research. The material has no been prepared in accordance with the legal requirements designed to promote the independence of investment research and such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
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