S&P weekly consolidation ongoing; uptrend still intact
Updated
Last week began with a bull rally that was very short-lived. Sellers stepped in, driving the price down through the last consolidation (and potential support) zone. By the end of the week, the market experienced a 180-degree shift in sentiment, with Friday closing with a bullish inside candle.
Currently, we have the following disposition:
1. The price is in an uptrend on the weekly chart, indicating that long-term buyers still maintain control.
2. The daily chart shows a downtrend, but so far, sellers have only managed to retrace 50% of the previous green wave.
3. There is an unfilled gap from Wednesday, the 24th. If bulls can fill this gap this week, it will demonstrate their strength.
From a fundamental perspective, there was no significant negative news. On the contrary, the inflation data was quite positive, and earnings were mostly decent, except for TSLA. This suggests that the current downtrend is just a controlled weekly consolidation. Therefore, we should look for a weekly higher low to enter LONG positions to capitalize on the continuation of the weekly uptrend.
A lot will depend on the Big Tech earnings reports coming out this week, but so far, there is no reason to expect negative surprises.
Disclaimer
I don't give trading or investing advice, just sharing my thoughts.
Currently, we have the following disposition:
1. The price is in an uptrend on the weekly chart, indicating that long-term buyers still maintain control.
2. The daily chart shows a downtrend, but so far, sellers have only managed to retrace 50% of the previous green wave.
3. There is an unfilled gap from Wednesday, the 24th. If bulls can fill this gap this week, it will demonstrate their strength.
From a fundamental perspective, there was no significant negative news. On the contrary, the inflation data was quite positive, and earnings were mostly decent, except for TSLA. This suggests that the current downtrend is just a controlled weekly consolidation. Therefore, we should look for a weekly higher low to enter LONG positions to capitalize on the continuation of the weekly uptrend.
A lot will depend on the Big Tech earnings reports coming out this week, but so far, there is no reason to expect negative surprises.
Disclaimer
I don't give trading or investing advice, just sharing my thoughts.
Note
Price formed perfect equilibrium as market is waiting for Big Tech earnings and FED interest rate decisionNote
Very choppy market. Equilibrium was broken to the downside but instead of follow through price is already rising on the pre-market.Note
Market rallied in the overnight session, opening above previous day's high. Buyers filled the gap from Wed 24th with strong close of the day. All speaks in favor of uptrend continuation, unless there will be negative surprises with big tech earningsNote
Market has become too hectic. Better just to stay away for some time
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