(Part 3 of 5) - S&P500 outlook for the week starting (08Dec25)
Market Outlook of S&P500 (08Dec25)
Technical Analysis Overview
MACD Indicator
Following the recent bottom crossover, the Moving Average Convergence Divergence (MACD) indicator is now signalling an uptrend. This suggests a potential shift in momentum toward bullish sentiment as the indicator moves higher.
Moving Averages
The price action, as depicted by the candlesticks, is currently situated above both the 50-day and 200-day moving average (MA) lines. This positioning indicates a bullish trend in both the short-term and long-term outlooks. Furthermore, both the 50 MA and 200 MA lines are themselves trending upward, reinforcing the positive trend.
Exponential Moving Averages (EMAs)
The three Exponential Moving Averages (EMA) lines have recently converged and are now showing an upward trajectory. This convergence and subsequent uptrend further support the case for continued bullish momentum in the market.
Chaikin Money Flow (CMF)
The Chaikin Money Flow (CMF) currently registers at 0.17 and is also trending upward. This reading indicates that there is more buying pressure than selling, which is typically interpreted as a positive signal for future price movement.
Based on technical analysis at the daily interval, the S&P500 is currently rated as a “Strong Buy.” 20 technical indicators support this positive outlook, each signalling a “Buy” recommendation. Notably, no indicators are suggesting a “Sell” at this time. This consensus among technical indicators reinforces the overall bullish sentiment.
CNN’s Fear & Greed Index is showing a “Fear” rating (40), recovering from the "Extreme Fear” rating from a week ago.
S&P 500 Outlook Summary (Candlesticks via Grok)
Short-term (1–4 weeks): Bearish to neutral – pullback likely toward 6,600–6,700 due to multiple high-reliability bearish reversal patterns.
Long-term (3–12 months): Remains bullish, but growing caution – uptrend intact unless 6,600 support breaks.
Given the above, it is likely that the S&P500 should trend upwards (bullish in the short term).
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