SP500 - Correction Looming or Bullish Replay?
The $S&P 500(.SPX)$ recently was 11% above its 125-day moving average (MA), that's a significant component of the Fear and Greed Index.
However, a historical perspective offers some context. While not the highest on record (September 2020 saw 19% and May 2021 reached 11.5%), it is noteworthy.
Historically, such overextensions have often led to a "visit" to the 125-day MA, a potential correction. However, there have also been instances where the 50-day MA served as a temporary bounce point (marked by green arrows) before the rally resumed to new highs with a lower degree of overextension and a subsequent visit to the 125-day MA at a higher price point.
Given current technicals, supportive breadth indicators, and a RSI below 50 (similar to the periods marked by green arrows), the 5110 level could offer some support.
Will history repeat itself, or is a correction on the horizon? $SPY $NDX $CL_F
$S&P 500(.SPX)$ $NASDAQ 100(NDX)$
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