What technical indicators & candlesticks say about the S&P 500 for the coming week (23Jun25)

Market Outlook of S&P500 (23Jun25)

Technical observations:

• MACD - a top crossover is completed, and this suggests a downtrend is coming. Ranging sideways can be a possible scenario, too.

• Exponential Moving Averages (EMA) lines are showing an uptrend. However, the 3 lines are converging, and a reversal to the downtrend is coming.

• Both the 50 MA line and the 200 MA line are showing an uptrend. This speaks of a bullish outlook for both the short and long term.

• The CMF is positive at 0.07, indicating more buying pressure over the past 20 periods.

The daily interval is showing a “Buy" rating for the S&P 500 index.

12 indicators show a “Buy” rating, and 5 indicators show a “Sell” rating.

Here are the recent candlestick patterns.

Outlook and Implications (from Grok)

• Short-Term Outlook: The emerging Evening Star and Bearish Engulfing patterns suggest a bearish short-term trend, with the S&P 500 likely to continue correcting. A break below 5,796.34 with high volume could accelerate the decline toward 5,629.83 (50 MA).

• Long-Term Outlook: The long-term trend is at a crossroads. The recent high and the current drop indicate a potential reversal. If the price holds above the 200 MA, the bullish trend could resume; otherwise, a deeper correction towards is possible.

• Actionable Insight: The bearish candlestick patterns suggest a short-term sell-off or consolidation. Traders should watch for a test of support at 5,796.34; a bounce from this level could signal a resumption of the uptrend, while a break below it with high volume may confirm a bearish shift. Monitor volume and MACD (which showed divergence on June 2) for confirmation of the next move.

The candlestick patterns indicate a shift to a bearish short-term outlook, with the longer-term trend at risk of turning neutral or bearish unless key support levels hold. The S&P 500 appears to be entering a correction phase following its recent peak.

From the technical analysis and candlestick patterns, I expect the market to decline in the coming days. The S&P 500 can range sideways.

@TigerStars

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