Equity index consolidation visible: Caution required.
Many signs point to the start of a consolidation in the S&P500:
- High triangle formation has failed to produce a breakout;
- Price has broken the MA20 to the downside;
- RSI trend has turned negative;
- MACD has turned negative.
This confirms my recent view that the main US Equity index has been overbought and ready for a consolidation.
Main levels from here:
UP - 2250 / 2260 / 2277.53
DOWN - 2237.57 / 2213.35 / 2195 / 2140
- High triangle formation has failed to produce a breakout;
- Price has broken the MA20 to the downside;
- RSI trend has turned negative;
- MACD has turned negative.
This confirms my recent view that the main US Equity index has been overbought and ready for a consolidation.
Main levels from here:
UP - 2250 / 2260 / 2277.53
DOWN - 2237.57 / 2213.35 / 2195 / 2140
Note
Impressive market rebound over the past 2 days. Closed below the 2,277.53 resistance so has not technically resumed its uptrend. Odds are still out as to the future direction of this index, which is proving very resilient, even though it is overdue for a correction. Even the Fed minutes highlighting concerns about faster US economic growth potentially pulling rates higher at a faster rate... Did not move the SPX!
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Related publications
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.