To The Moon

Market Outlook of S&P500 - 06May24

• The MACD indicator is on a downtrend and there is a setup for a potential reversal in the common days.

• 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 line moves toward the “0” line.

• 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. The 3 EMA lines are turning sideways and there could be ranging or reversal. For the reversal to be confirmed, the 3 EMA lines need to complete cross-over for all 3 lines with the EMA 9 line on top and the EMA 20 line at the bottom.

• 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.

Investing recommends a “Strong Buy” for S&P500 with 16 indicators having a “buy” status, 2 with a “sell” status and 3 “neutral” status.

For the coming week, the S&P500 should go down though a technical reversal is expected in the coming days. There are no major economic data announcements but tensions are building in the local school campuses and the Middle East.

@TigerStars

$S&P 500(.SPX)$

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