S&P 500 appears to be in a bottoming process
There's been many bullish divergence + higher low patterns happening on the daily chart of the S&P 500 leading to bear market rallies. It is now happening on the weekly chart which could suggest something more than just a bear market rally and instead an actual rally that leads to a bull market. To confirm the weekly bullish divergence, we want to see a higher low form in addition to the divergence, possibly around the 3600-3700 level.
However, it is important to note that the market can actually make a new low and this pattern could still be in play except instead of having a low + lower low in price and a low + higher low on the MACD, you would have a low + lower low + lower low in price and a low + higher low + higher low in the MACD. If a higher low is unable to form this time around, I would suspect we would see the next low around the bottom 2, green dashed lines.
However, it is important to note that the market can actually make a new low and this pattern could still be in play except instead of having a low + lower low in price and a low + higher low on the MACD, you would have a low + lower low + lower low in price and a low + higher low + higher low in the MACD. If a higher low is unable to form this time around, I would suspect we would see the next low around the bottom 2, green dashed lines.
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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.