Hanging Man at the Top of the Channel?
The S&P 500 just finished its third straight winning month. Now there could be signs of weakening as May begins.
First, let’s revisit the price channel running along the index all year. SPX has been stuck at the top of that ascending range since the middle of April. Will prices retreat from the upper line?
Second, last Thursday saw a new all-time high and a lower low versus Wednesday. That created an outside day and hanging man candlestick pattern on the chart – potential reversal patterns.
Finally, MACD has turned negative.
This fatigued price action occurred after several big events: the Fed, Big Tech earnings and GDP.
Investors could now face the risk of all the good news being priced in – especially with a new month beginning.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
First, let’s revisit the price channel running along the index all year. SPX has been stuck at the top of that ascending range since the middle of April. Will prices retreat from the upper line?
Second, last Thursday saw a new all-time high and a lower low versus Wednesday. That created an outside day and hanging man candlestick pattern on the chart – potential reversal patterns.
Finally, MACD has turned negative.
This fatigued price action occurred after several big events: the Fed, Big Tech earnings and GDP.
Investors could now face the risk of all the good news being priced in – especially with a new month beginning.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
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