Due to my exams i’m currently extremly short in time so im just going to go through my main ideas very fast.
Technically speaking the main situation for USA market, in this case s&p500, is if it will break or not the triangle that we see in the graph. It’s being attempting to do so but not quite making it true. But it has to decide soon because the triangle seems to be finishing…
I’d like to remark the support of 150 weighted average. As we can see its following the market working as a dynamic support quite consistently.
RSI is not doing badly either. It looked like it was going to lose the trend line, (in orange) but it seems to be trying to catch up with it again. Which would actually be a very positive sign because it would confirm the positive trend. Then I’d like to check Koncorde indicador. Right now what it is indicating is that the strong hands are buying the market quite a lot. And I’m not talking about Friday only but about the whole week. As we can see the blue area is big and getting bigger. Which means that the institutional traders trust the market and are betting for it. This is normally a positive signal.
For this I am quite positive about the S&P 500. I think we can see positive moves in the near future. So as long as we don’t loose the 150 average and nothing very bad happens i think we should try to take longs in the market.
Currently there are two possible strategies to consider:
(a) Buy the triangle breaking. If you see the market going up, BUY! Its breaking and a decent move upwards should come.
(b) Take long positions at the bottom of the triangle. If the market has some volatility and it happens that it goes down again to 2080, to the 150 moving average, then buy. You would have a short S-L and some good profit opportunity if there’s finally a upwards triangle breaking.
See you soon and have good trades!
Nuño Pérez del Barrio