S&P500 Short-Term Update

S&P500: 1215.76

Short-Term Trend: weak downtrend

Outlook: Since the prices are below the declining 100-day moving average, the daily trend is still labelled as weak downtrend. However, the close abv the 1210 level is a positive sign that the market has actually build a base for the past month or so. The last decline to 1135 represents the final shake-out that is usually seen near the end of a basing formation. Thus, as long as the 1135 level holds, I give the benefit of the doubt to the upside. Only a decline below 1135 will be negative and yes, it will be very negative. But for now, the outlook is neutral to slightly positive.

Strategy: As our short idea have not worked out, I prefer to stay out now.

About the author: Alexander Nikolov

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