www.varchev.com

S&P 500: Is It More Than a Bear Market Rally?

After such a strong rally the previous week and by the end of the month we were expected to see some recovery. However, this was limited over the past week to Monday and Tuesday as the bulls watched enough and the bear buyers came back into play in a big way on Wednesday. Overall, the indexes had little net movement, but still rose.

Holding the price around these higher levels improves the chances and sustainability of the big moves the markets have made recently. Indicators continue to turn from bears to bulls. Yet the weekly price channel (below) doesn’t signal that this rally is anything more than the bear market variety.

The channel is still intact and the candles on this chart are pink, meaning moderately bearish. The SAR (red arrow) remains bullish and the downtrend line may soon be removed and replaced by a flatter resistance line.

The indicators we are using this week include the Traders Dynamic Index (TDI) and the Chande Momentum Indicator. TDI uses a combination of indicators such as the Relative Strength Index (RSI) and Bollinger Bands, which provide excellent buy/sell crossover signals. Note the recent crossover at the end of July and we now see the lines crossing above the “smoothed” smooth line for the first time in a year.

Looking back to 2020, this crossover in July of that year was an excellent place for a long position. The Chande Oscillator also looks at the relative strength of the markets. It is similar to other momentum indicators in that the strongest signals are created by higher highs, higher lows on the chart. We see that the weekly S&P 500 Chande indicator is currently at the zero line, a resistance level that says this rally could stop.

So we have a divergence in similar metrics. In this case, stick to the price chart, which is still bearish but is starting to look better.


 Dealer Anatoliy Pavlov

Login to comment

* Rough, sarcastic and ironic language is not allowed. For such Admins Delete without notice.

Leave a Reply

Comments:

Leave a comment

Varchev Absolute Trader

борсова платформа

  • Търгувай над 3000 финансови инструмента: Crypto, Форекс, Акции, Индекси, Суровини, ETF-и
  • Използвай платформа с директно изпращане ордерите на борсите
  • Best Trading Platform - "Online Personal Wealth Awards" EU награждава Varchev Absolute Trader
  • Cloud base платформа - твоят трейдинг сетъп на всяко устройство
  • Traders Talk - чуй какво движи пазарите в реално време
  • Market Sentiment - търгувай с настроенията на инвестиционите банки
  • Top movers - най-горещите трейдове във всеки един момент
  • Stocks scanner - филтрирай най-подходящите за твоя трейдинг стил пазарни инструменти
  • Heat map - Търгувай в посоката на големите играчи


Read more:
RECCOMEND WAS THIS POST USEFUL FOR YOU?
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
WARNING: Any news, opinions, research, data or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. Varchev Finance Ltd. expressly disclaims any liability for any lost principal or profits which may arise directly or indirectly from the use of or reliance on such information. Varchev Finance Ltd. may provide information, quotes, references and links to or from other sites and blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the sites, blogs or other sources of information.
Varchev Finance
chat with dealer
CALL NOW