SP500 is near its all time high, so we must start looking closely at the patterns within the candlesticks. Here, we have a Keltner Channel, with a line in the middle of a blueish cloud. Once the prices hit the edge of the cloud, we usually see some sort of correction back to center. This will decrease size of cloud, as long as it does not overcorrect. As the cloud gets thinner, we are closer to a breakout, we may see this start to happen as we approach the All Time High. But, the cloud does not need to be thin for a reversal.
The candlesticks show a Bearish pattern on the daily chart, as well as the 4HR, 1HR and a couple others. This does not mean reversal yet, but could mean one is on the way. We normally see the price hit the edge of the cloud, before a major pullback occurs. But also watch for a thinning cloud with a reversal pattern on it.
I think this will finish its move downward near the center, and then bounce off to an All time High of SP 500, at which point we should tread very carefully - as even though we are at an all-time-high, I don't think many investors fully believe that we should be.
The candlesticks show a Bearish pattern on the daily chart, as well as the 4HR, 1HR and a couple others. This does not mean reversal yet, but could mean one is on the way. We normally see the price hit the edge of the cloud, before a major pullback occurs. But also watch for a thinning cloud with a reversal pattern on it.
I think this will finish its move downward near the center, and then bounce off to an All time High of SP 500, at which point we should tread very carefully - as even though we are at an all-time-high, I don't think many investors fully believe that we should be.
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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.