To The Moon

Market Outlook of S&P500 - 30Sep24

Observations:

• The MACD indicator is on an uptrend. Let us look out for a “double top” which suggests that a reversal is not far away.

• Moving Averages (MA). Both the MA50 line and the MA200 line are on an uptrend. Both MA50 and MA200 lines are below the last candle. Thus, it could be read as bullish for both the mid and the long term.

• The 3 Exponential Moving Averages (EMA) lines are on an uptrend.

• Chaikin’s Monetary flow (CMF) shows an uptrend but there seems to be strong buying volume compared to selling. The line has started to trend downwards.

• 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, they recommend a “STRONG BUY” based on 1D interval. 20 indicators point to a “BUY” rating and there are zero indicators with a “SELL” rating.

From the above, the technical indicators are pointing to more buying in the coming week.

There are more bullish candlestick patterns than bearish ones.

In my opinion, the S&P500 should start with an uptrend but could peak soon. One of the good references that we can look into are the volume as these represent the momentum of the current (up) trend. The volume remains relatively strong and thus, we can expect the current buying momentum to remain. From the chart, we should also expect a probably peak in the coming days.

@TigerStars

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