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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Investing vs. Speculating—How Do You Balance the Two?

Take a look at your own portfolio—are your top performers driven by long-term investments, or were they more speculative plays? So, how do you divide your portfolio between these two approaches? What’s your balance?

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

BruceBryant
04-15
BruceBryant
Wah, this content very goot hor!
YueShan
04-16
YueShan
Good⭐️⭐️⭐️

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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 $CL_F <a data-mention-id=\".SPX\" class=\"teditor-mention\" data-mention-name=\"S&amp;P 500\" href=\"https://ttm.financial/S/.SPX\">$S&amp;P 500(.SPX)$</a> <a data-mention-id=\"NDX\" class=\"teditor-mention\" data-mention-name=\"NASDAQ 100\" href=\"https://ttm.financial/S/NDX\">$NASDAQ 100(NDX)$</a> <img alt=\"Image\" title=\"Image\" src=\"https://community-static.tradeup.com/news/638cca9836e52af284617b963e72bddb\" tg-width=\"1232\" tg-height=\"720\">Image</body></html>","htmlText":"<html><head></head><body>The <a data-mention-id=\".SPX\" class=\"teditor-mention\" data-mention-name=\"S&amp;P 500\" href=\"https://ttm.financial/S/.SPX\">$S&amp;P 500(.SPX)$</a> 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 $CL_F <a data-mention-id=\".SPX\" class=\"teditor-mention\" data-mention-name=\"S&amp;P 500\" href=\"https://ttm.financial/S/.SPX\">$S&amp;P 500(.SPX)$</a> <a data-mention-id=\"NDX\" class=\"teditor-mention\" data-mention-name=\"NASDAQ 100\" href=\"https://ttm.financial/S/NDX\">$NASDAQ 100(NDX)$</a> <img alt=\"Image\" title=\"Image\" src=\"https://community-static.tradeup.com/news/638cca9836e52af284617b963e72bddb\" tg-width=\"1232\" tg-height=\"720\">Image</body></html>","text":"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. 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