S&P bulls are strong; new historical high?
Last week was marked by an increase in selling pressure, which, despite all efforts, has not had a significant impact. As we can see on the daily chart, the stairstep pattern remained intact—even a powerful attack on Thursday was unable to break the previous day's low. The bulls maintained control, leading to a small rally the following day (I highlighted the importance of the stairstep pattern in my previous review).
As we approach the end of the month, there are a few things to keep an eye on:
1. The price is in a weekly uptrend, which has not been seriously threatened so far. Buyers maintain long-term control over the price.
2. The daily timeframe is also under buyers' control.
3. All major S&P sectors are moving in the same direction.
Price is approaching previous major high (565), which can act as a resistance but there is no guaranty that it will hold for long. The last consolidation, which began on July 17th, was triggered more by bullish exhaustion than by strong selling at this level. This suggests that there may be little to safeguard it.
Given all the above, there is no reason to believe that market is currently under threat. For the trend to shift to the bearish side, three things must happen (from the TA perspective):
1. Daily Sellers must take down the previous day low, breaking stairstep pattern
2. Weekly Sellers must take down the previous week low (553.8), setting weekly lower high
3. Month should close red (below 552)
Until then we’re in a bull market.
As we approach the end of the month, there are a few things to keep an eye on:
1. The price is in a weekly uptrend, which has not been seriously threatened so far. Buyers maintain long-term control over the price.
2. The daily timeframe is also under buyers' control.
3. All major S&P sectors are moving in the same direction.
Price is approaching previous major high (565), which can act as a resistance but there is no guaranty that it will hold for long. The last consolidation, which began on July 17th, was triggered more by bullish exhaustion than by strong selling at this level. This suggests that there may be little to safeguard it.
Given all the above, there is no reason to believe that market is currently under threat. For the trend to shift to the bearish side, three things must happen (from the TA perspective):
1. Daily Sellers must take down the previous day low, breaking stairstep pattern
2. Weekly Sellers must take down the previous week low (553.8), setting weekly lower high
3. Month should close red (below 552)
Until then we’re in a bull market.
Not
Day has finally closed red below previous day low but just by 2!! ticks. Can this really be trusted?
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