Market outlook of S&P500 of the week 05Aug24 - what more than 20 indicators tell us

Market Outlook of S&P500 - 05Aug24

Observations:

• The MACD indicator is showing a downtrend.

• Moving Averages (MA). Both the MA50 line and the MA200 line are on an uptrend. The last candle is below the MA 50 line and above the MA 200 line. Thus, it could be read as bullish for the long term and bearish in the mid-term.

• The 3 Exponential Moving Averages (EMA) are on a downtrend.

• For Chaikin’s Monetary flow (CMF), it is showing a downtrend. There is a chance for some reversal in the coming days.

• 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.

From investing dot com, the S&P500 is on a downtrend. Technically, it looks to be a “Strong sell”.

Using 20 technical indicators, they largely point to a “Sell” rating with 4 showing a “buy” rating and 16 showing a “sell” rating.

In my opinion, the S&P500 should continue its downtrend in the coming week though some earnings could add to the volatility in the market. The drop should not last forever and thus, it could reverse soon. However, the selling momentum (seen in CMF) is growing in strength.

For me, the S&P500 should continue its downtrend in the coming week.

@TigerStars

$S&P 500(.SPX)$

$SPDR S&P 500 ETF Trust(SPY)$