We currently see the S&P 500 in an uptrend as the index gaped higher Friday above the key resistance level at $2900 on the back of strong Q1 earnings from JP Morgan, Wells Fargo and PNC. This is confirmed by the 20 day moving average of $2836 having risen through the longer-term 100 day moving average of $2698 indicating a buy alert. Also, the 50 day moving average currently at $2783 has crossed the 100 day moving average confirming the buy signal. Additionally, the RSI is currently 69.3 nearing the upper end of the range ie: 70 signalling the index is on the verge of being overbought.
As a result, we see a potential bearish rising wedge for the S&P 500 with higher highs and even higher lows with prices breaking resulting in a correction towards the key resistance level at around 2600. Therefore,we expect the index to continue rising towards it’s all time high around $2940 before a possible subsequent sell off.
As a result, we see a potential bearish rising wedge for the S&P 500 with higher highs and even higher lows with prices breaking resulting in a correction towards the key resistance level at around 2600. Therefore,we expect the index to continue rising towards it’s all time high around $2940 before a possible subsequent sell off.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.