S&P 500 Reaches Yet Another New Local High, But Reversal May Be In Sight

Mar 30, 2022

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The prolonged its uptrend after breaking above the 4,600 degree. Nonetheless, at this time we are going to probably see some profit-taking motion.

The broad inventory market index gained 1.23% on Tuesday, following its Monday’s achieve of 0.7%. Shares prolonged their uptrend on a possible Ukraine battle ceasefire information yesterday.

There’s nonetheless plenty of geopolitical uncertainty, however traders preserve leaping again into shares. Nonetheless, we might even see some short-term profit-taking motion.

The closest essential resistance degree is now at round 4,650-4,700. Alternatively, the help degree is at 4,550-4,600, marked by the current resistance degree. The S&P 500 index broke above its January-February native highs together with the 4,600 degree, as we will see on the every day chart (chart by courtesy of http://stockcharts.com):

S&P 500 Daily Chart

Futures Contract Stays Above Its Upward Development Line

Let’s check out the hourly chart of the contract. It’s buying and selling above the short-term upward development line and above the 4,600 degree. We are able to see some technically overbought circumstances. Nonetheless, there have been no confirmed unfavorable indicators up to now.

We’re sustaining our worthwhile lengthy place from the 4,340 degree. (our premium Inventory Buying and selling Alert consists of particulars of our buying and selling place together with the stop-loss and revenue goal ranges) (chart by courtesy of http://tradingview.com):

S&P 500 Futures 1-Hour Chart

S&P 500 Futures 1-Hour Chart

Conclusion

Though we might even see some short-term profit-taking motion on the S&P 500, there have been no confirmed unfavorable indicators up to now. Nonetheless, some clear technical overbought circumstances could result in a correction.

The market shall be ready for Friday’s month-to-month launch. This morning we’ve acquired the launch, and it was as anticipated.

Right here’s the breakdown:

• The S&P 500 index additional prolonged its uptrend yesterday, however some profit-taking motion appears probably within the close to time period.

• We’re sustaining our worthwhile lengthy place (opened on Feb. 22 at 4,340).

• We’re nonetheless anticipating some upside from the present ranges; nevertheless, it’s time to get extra cautious as there could also be a downward correction.

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