S&P 500 (SPX) - May 6th Week Ahead (Bullish Harami!)
S&P 500 (SPX) - May 6th Week Ahead Bullish Forecast
This week, we've observed a bullish signal with a weekly harami candlestick pattern, indicating potential upward momentum. Here's the forecast for the week ahead:
Short-term Outlook (May 6th Week):
We anticipate the S&P 500 to continue its bullish momentum, aiming for new highs.
The weekly harami bullish close suggests a reversal of previous downward sentiment, setting the stage for upward movement.
Our short-term target is 5665 for the S&P 500.
VIX Analysis:
The VIX, currently around $12, may test lower levels this week, possibly dipping below $12.
However, we may see temporary bounces around the $12 mark, possibly occurring a few more times before sustained downward movement.
In the short term, expect fluctuations in the VIX, with potential tests around $12.
Intermediate to Long-term Outlook (Most Likely Q4):
Looking ahead to the intermediate to long term, particularly in Q4, we forecast further decline in VIX values.
We anticipate sub-$12 levels, possibly down to $11.50 or lower, with multiple daily closes supporting this trend.
Upon reaching these levels, we'll position ourselves for ultra-long UVIX/UVXY trades, employing laddered expirations ranging from one week to multiple weeks/months.
We'll maintain directly held positions in anticipation of increased volatility, capitalizing on the VIX's movement.
Summary:
Short-term bullish sentiment prevails, with a target of 5665 for the S&P 500.
VIX may test lower levels, potentially dipping below $12, with short-term fluctuations and possible bounces around this mark.
In the intermediate to long term, expect a decline in VIX values towards sub-$12 levels, where we'll position ourselves for ultra-long trades.
This week, we've observed a bullish signal with a weekly harami candlestick pattern, indicating potential upward momentum. Here's the forecast for the week ahead:
Short-term Outlook (May 6th Week):
We anticipate the S&P 500 to continue its bullish momentum, aiming for new highs.
The weekly harami bullish close suggests a reversal of previous downward sentiment, setting the stage for upward movement.
Our short-term target is 5665 for the S&P 500.
VIX Analysis:
The VIX, currently around $12, may test lower levels this week, possibly dipping below $12.
However, we may see temporary bounces around the $12 mark, possibly occurring a few more times before sustained downward movement.
In the short term, expect fluctuations in the VIX, with potential tests around $12.
Intermediate to Long-term Outlook (Most Likely Q4):
Looking ahead to the intermediate to long term, particularly in Q4, we forecast further decline in VIX values.
We anticipate sub-$12 levels, possibly down to $11.50 or lower, with multiple daily closes supporting this trend.
Upon reaching these levels, we'll position ourselves for ultra-long UVIX/UVXY trades, employing laddered expirations ranging from one week to multiple weeks/months.
We'll maintain directly held positions in anticipation of increased volatility, capitalizing on the VIX's movement.
Summary:
Short-term bullish sentiment prevails, with a target of 5665 for the S&P 500.
VIX may test lower levels, potentially dipping below $12, with short-term fluctuations and possible bounces around this mark.
In the intermediate to long term, expect a decline in VIX values towards sub-$12 levels, where we'll position ourselves for ultra-long trades.
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.