After this troubled weeks the SPX hold its fall around the following supports: Moving Average Exponential (200 periods) and the 23.60% Fibonacci retracement. The long term tendency is still a bullish one, since the MME200 is ascendent, and the price is still holding on it.
The future is foggy to say the least, I will not speculate about what was responsible for this drop in the SPX, but one thing is for sure, the economic signals are very deteriorated and the stock market is overvalued. A big Crash is coming, but when? We cannot be certain.
The RSI and MACD gives us no clear indication here.
The price has hold in 2 very strong support levels, MME200 and 23.60% Fibo retracement. The next levels o support in case the SPX drops are:
- 2745 pts (38.2% Fibo retracement)
- 2665 pts (50% Fibo retracement)
- 2585 pts (61.8% Fibo retracement)
In case the price goes up, we have the following resistances:
- 3020 pts (the last top)
- Around 3150 pts (Upper band of the envelope)
What to do?
For now, if you have a healthy allocation strategy playing out, with enough hedge to counter a coming Crash, technically speaking it is a good time to buy more ETFs that follows the SPX.
In the other hand, I do not recommend any speculative trade for the index.
Leave your thoughts bellow.
Do you agree with this analysis?
What are your views for the S&P 500?
The future is foggy to say the least, I will not speculate about what was responsible for this drop in the SPX, but one thing is for sure, the economic signals are very deteriorated and the stock market is overvalued. A big Crash is coming, but when? We cannot be certain.
The RSI and MACD gives us no clear indication here.
The price has hold in 2 very strong support levels, MME200 and 23.60% Fibo retracement. The next levels o support in case the SPX drops are:
- 2745 pts (38.2% Fibo retracement)
- 2665 pts (50% Fibo retracement)
- 2585 pts (61.8% Fibo retracement)
In case the price goes up, we have the following resistances:
- 3020 pts (the last top)
- Around 3150 pts (Upper band of the envelope)
What to do?
For now, if you have a healthy allocation strategy playing out, with enough hedge to counter a coming Crash, technically speaking it is a good time to buy more ETFs that follows the SPX.
In the other hand, I do not recommend any speculative trade for the index.
Leave your thoughts bellow.
Do you agree with this analysis?
What are your views for the S&P 500?
