SP500 : CONSOLIDATING
- The hedge funds' favorite index has registered higher high peaks and bottoms since the end of October 2023, the medium-term trend is therefore bullish.
- Since the start of 2024, the American index has followed the overall trend of reduced risk appetite from investors, leading the market to a consolidation phase. This consolidation is characterized by the end of the rally started at the end of 2023 (dotted lines) and the start of a chartist flag pattern (solid lines).
The MACD indicator confirms the lack of market directionality of the bullish movement, after showing a bearish crossover following a bearish divergence on the last two highs.
The Stochastic has just given a bearish signal in the very short term, which argues for a continuation of the consolidation movement.
- In conclusion, the market currently has little chance of overcoming its first available resistance and the continuation of the consolidation movement seems to be the most likely scenario in the short term.
Intraday traders could possibly try to work the market inside the flag, while medium/long-term investors will probably prefer to wait for the break of one of the two bounds to play a more directional movement.
- Since the start of 2024, the American index has followed the overall trend of reduced risk appetite from investors, leading the market to a consolidation phase. This consolidation is characterized by the end of the rally started at the end of 2023 (dotted lines) and the start of a chartist flag pattern (solid lines).
The MACD indicator confirms the lack of market directionality of the bullish movement, after showing a bearish crossover following a bearish divergence on the last two highs.
The Stochastic has just given a bearish signal in the very short term, which argues for a continuation of the consolidation movement.
- In conclusion, the market currently has little chance of overcoming its first available resistance and the continuation of the consolidation movement seems to be the most likely scenario in the short term.
Intraday traders could possibly try to work the market inside the flag, while medium/long-term investors will probably prefer to wait for the break of one of the two bounds to play a more directional movement.
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