A mixture of signs
$S&P 500 Index(.SPX.US$ I can't quite figure out what the trend is at this stage due to a mixture of signals in the differrent timeframes. ![]()
Starting with the 4H chart, price might be following a possible channel (Bear flag maybe?)
In the Daily chart, price got rejected off its 20MA, kinda seem like a pullback in a downtrend.
In the Weekly chart, price closed above both its 5 & 10 EMA, which is a bullish thing. However, it also closed below its 5 & 10 MA, with them forming a bearish crossover. Also, this was an inside candle (within last week's candle).
In the Monthly chart, price tagged and managed to close well above its 5MA, which is a bullish thing. Do note that it did not make a new high as compared to the previous Month's candle.
Bullish case: Price has tagged and is well above the Weekly 20MA and Monthly 5MA, who both tend to be the area of support for a bull run in the larger timeframes.
Bearish case: With the bearish crossover in the Weekly Chart and the rejection in the Daily chart, the recent buliish price action may just a bear flag/pullback in the downtrend that started 4 weeks ago, which in itself may just be a larger pullback (10%?) in the overall bull run as discussed in a previous post.
I think price should be able to tag the Weekly 5 & 10 MA next week, and I shall see how it reacts to them. If next week's candle closes above them, then this pullback is probably done.
Just my thoughts. ![]()
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Euler007 : Learn from you!
Kevin Matte : My feelings about the market. I realized that the last ATH corresponds to the fibonnaci retracement level. I see its value which could perhaps go down to meet the 50MA, and in the worst case go down to the 200MA, in the 1W.