Can S&P500 sustain its uptrend?
“S&P500 extends its gains despite lingering in the overbought region.”
US stocks extended its price rally for the week, building up for fourth consecutive week of gains while investors gear up for upcoming earnings report. Overall, equities market in the US remains in demand after recent inflation data shows signs of hitting its peak. The data signaled possibility of slowdown in policy tightening from Federal Reserve, which may reduce chances of an economic downturn. Nonetheless, it is worth noting that US equities remains well overbought for the time being.
Quick recap of S&P500
The index extended its gains significantly after rebounding from 200-MA line from the lower levels.
S&P500 Weekly Technical Analysis
From weekly perspective, the index is currently approaching the top level of bearish expanding channel.
S&P500 Daily Technical Analysis
In terms of daily perspective, it has recently closed above 200-MA line. The only hurdle that may cap its current bullish momentum would be the top level of bearish expanding channel.
ORDER: BUY STOP
STOP LOSS: 4330
Target 1: 4545
Target 2: 4645
ZFX Analyst’s Comment
While the index exerts greater dominance towards the downside, recent bull-run may eventually overcome bears. Thus, we would suggest waiting for a breakout at the top level before entering the market.
Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.
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