Market Outlook of S&P500 - 15Apr24

Market Outlook of S&P500 - 15Apr24

Technical observations of the S&P500 1D chart:

• The MACD indicator is on a downtrend from the past week and this should continue into the coming week.

• Chaikin Money Flow (CMF) has hit below the zero line. This can be seen as a bearish signal with more selling volume.

Interpretation of CMF from the CFI website:

When there is a continuous buying period (when the CMF value is sustained above zero), the trend is considered bullish and indicates that price will continue to rise with the trend. When there is continuous selling pressure (CMF value below zero), this points to a bearish trend, indicating price will continue downward.Higher readings, either positive or negative, indicate a stronger trend. Increasing readings indicate gaining momentum.Crosses may be bullish or bearish. Bullish crosses occur when the CMF crosses the zero line from below, and stock prices continue on an upward trend. Bearish crosses occur when the CMF crosses the zero line from above, and prices continue to fall.

• Moving Averages (MA). Both the MA50 line and the MA200 line are on an uptrend. The last candle is above both the MA 50 line and the MA 200 line. Thus, it could be read as bullish for the long-term and mid-term. However, the candle is due to touch the MA50 line. The mid-term trend could change in the coming days.

• Exponential Moving Averages (EMA). The 3 EMA lines are starting to converge. This implies a coming reversal of the current uptrend. However, this is yet to be completed until all 3 EMA lines have crossed and commence a downward pattern.

• I have replaced Stochastic with CMF to incorporate consideration of volume. Stochastic and MACD are similar with Stochastic being “more active” and more capable for “false” signals.

It seems that the market should continue to show a downtrend in the coming week.

@TigerStars

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