How does S&P 500 look on a daily Chart?
Is S&P 500 Buy on Pullback or Sell on Rally?
S&P 500 was trading at all time high of 1710 in early August. A market that trades at all time high is always an attractive Buy on pullback. Going by this definition – the market is a BUY
But if you purely look at the daily chart – and the way S&P 500 has broken down below 1682-1685 with a large candle – it’s very difficult to build a bullish picture at least based on this set up. Technically – S&P 500 will have to close above 1685 to negate the bearish energy of the market.
Right now, shorts will get jittery on pullback considering overall macro picture of the market. We don’t know how far market can pullback on the upside. The first resistance seems to be 1658-1660 which seems to have held well for now 4 days. A breakout above 1658-1660 will result in some short term short covering push but will that mean return of Bulls — too early to say.
Is S&P 500 Buy on Pullback or Sell on Rally?
S&P 500 was trading at all time high of 1710 in early August. A market that trades at all time high is always an attractive Buy on pullback. Going by this definition – the market is a BUY
But if you purely look at the daily chart – and the way S&P 500 has broken down below 1682-1685 with a large candle – it’s very difficult to build a bullish picture at least based on this set up. Technically – S&P 500 will have to close above 1685 to negate the bearish energy of the market.
Right now, shorts will get jittery on pullback considering overall macro picture of the market. We don’t know how far market can pullback on the upside. The first resistance seems to be 1658-1660 which seems to have held well for now 4 days. A breakout above 1658-1660 will result in some short term short covering push but will that mean return of Bulls — too early to say.
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