S&P 500 Completed Correction/ Readying for New Wave
On Weekly Basis:
S&P 500 (SPY) completed its correction from 4800 to 3490 in its 5 Wave Down. Fibonacci 50% retracement from bottom 2300 to top 4800 ends at 3540, a support level. It fell 27% from top which looks quite healthy from long term point of view. Tech sector has taken a deep hit and looks like it has entered a bear market. It took a support at 3492 which is a long term horizontal support 3515 on weekly charts. It breached a strong support briefly, which was a false bear move and reversed the trend immediately. It looks like a fresh new Wave has just started. One can be cautiously optimistic and it provides a good choice to buy at current level as a downward trendline is broken on the up side. There is a chance pf golden cross over at 200 DMA, may happen soon for further confirmation in change of down trend. It has come out of oversold position (June, 2022) to neutral zone. RSI was deeply oversold and made a double bottom in June, 2022. Now it has broken the downward trendline and continuously going up, may give a chance for long position with change in sectoral leadership.
Warning and Disclaimer:
Above prediction should not be taken as financial advise, it is a personal opinion.
Consult your financial advisor.
Investment is subject to market risks.
Past performance is not the guarantee for future performance.
It is for educational purpose only.
S&P 500 (SPY) completed its correction from 4800 to 3490 in its 5 Wave Down. Fibonacci 50% retracement from bottom 2300 to top 4800 ends at 3540, a support level. It fell 27% from top which looks quite healthy from long term point of view. Tech sector has taken a deep hit and looks like it has entered a bear market. It took a support at 3492 which is a long term horizontal support 3515 on weekly charts. It breached a strong support briefly, which was a false bear move and reversed the trend immediately. It looks like a fresh new Wave has just started. One can be cautiously optimistic and it provides a good choice to buy at current level as a downward trendline is broken on the up side. There is a chance pf golden cross over at 200 DMA, may happen soon for further confirmation in change of down trend. It has come out of oversold position (June, 2022) to neutral zone. RSI was deeply oversold and made a double bottom in June, 2022. Now it has broken the downward trendline and continuously going up, may give a chance for long position with change in sectoral leadership.
Warning and Disclaimer:
Above prediction should not be taken as financial advise, it is a personal opinion.
Consult your financial advisor.
Investment is subject to market risks.
Past performance is not the guarantee for future performance.
It is for educational purpose only.
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