On Friday a significant round level of 5100 points on S&P 500 was tested. Buying should still be reasonably cautious due to the presence of triple divergence on the RSI indicator. Short-term consolidation is likely. The nearest support is around 5040 points, and a potential sentiment reversal point is located around 4950 points (recent low in the area of the 20-day moving average).
It seems reasonable that some consolidation must take place after many weeks of growth, which mostly was attributed to growth either of Magnificent 7 stocks, or chip producers (SOX index). Many large cap stocks have peaked at ATH, and historically after the index breaches ATH, there’s up to 5-10% correction.
It seems reasonable that some consolidation must take place after many weeks of growth, which mostly was attributed to growth either of Magnificent 7 stocks, or chip producers (SOX index). Many large cap stocks have peaked at ATH, and historically after the index breaches ATH, there’s up to 5-10% correction.