S&P 500 chart (SPI:SP500) is really a protracted bull market. In
spite of disturbing news from all over the worlds, the market has been making
news lower highs and higher highs.
The historical data depicts fierce battles between bulls and bears
between August and October 2019. The impasse ended in October that year and a protracted
bullish trend was assumed, which has held out till now.
As shown in the chart, there is still more room for the market to go,
given the 4 EMAs used for this analysis. The EMAs are 10, 20, 50 and 200. The color
that stands for each EMA is shown at the top left chart of the chart.
It can be seen that all the EMAs are sloping upwards – confirming the
current uptrend. In a foreseeable future, there may be retracements into the
EMAs 10 or 20, which would be followed by further higher movements. As long as
the EMA 50 is not breached to the downside, this uptrend will remain intact.
The only thing that can render the bullish outlook on S&P 500 invalid
is a situation in which the EMA 200 is breached to the downside; and that is
something that will take a very long time to happen.
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
Trading realities: Trading realities
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