what 21 indicators say about S&P500 for the coming week (25Mar24)?
Market Outlook of S&P500 - 25Mar24
Technical observations of the S&P500 1D chart:
The MACD indicator is ranging sideways despite having completed another top crossover. We are expecting a reversal to a downtrend in the coming days.
Chaikin Money Flow (CMF) advises that the bullish run is fading away though the line remains above zero (typically bullish).
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.
Exponential Moving Averages (EMA). The 3 EMA lines have yet to converge and they are spreading outwards in a fan-like shape that implies an uptrend.
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, it recommends a “Strong Buy” for the S&P500 (based on 1D chart).
From the 21 technical indicators and moving averages, a “Strong Buy” rating was suggested. This comprised of indicators showing 20 (Buy), 0 (Neutral) and 1 (Sell).
From the indicators above, we can expect an uptrend though it is due for a correction.
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