To The Moon

Market Outlook of S&P500 - 22Apr24

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. Note that there may be a reversal in this coming up as the volume trend seems to be changing direction.

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

• Exponential Moving Averages (EMA). The 3 EMA lines have converged and started a downtrend.

• 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.

Introduction of a new indicator A/D Line

From MarketInOut’s website on 20 Apr 2024 (10.15am SGT):

The Advance/Decline Volume Line is a breadth indicator which is calculated by taking the difference between the volume of advancing and declining issues and adding the result to the previous value. It rises when advancing volume exceeds declining volume and falls when declining volume exceeds advancing volume. It's important to compare Advance/Decline Volume Line plotted for the index with the performance of the actual index. The AD Volume Line should confirm an advance or a decline with similar movements.

Note that the A/D volume line is starting to turn upwards, thus, the bulls could be back if this momentum continues.

Based on daily intervals, investing recommends a “strong sell” rating. There are 4 “Buy” ratings and 17 “Sell” ratings from Investing.

After reviewing the various technical data above, the S&P 500 should continue to decline in the coming days.

@TigerStars

$S&P 500(.SPX)$

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

$Cboe Volatility Index(VIX)$