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Tag: SPX

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SPX Had A Price Correction

S&P 500’s opening price in 2021 was $3699.90. Price has been appreciating leading to different all-time highs. The SPX has done so well with return for investors as each month since the beginning of this year, there have been new all-time highs reached. The latest all-time high was reached at $4,745.40. This week has been very bad for $SPX has the price fell to $4,594.61 from the weekly opening price of $4711.61. Many stocks’ prices fell during the week as a result of the new variant of coronavirus discovered in South Africa named ‘Omicron’. A few countries are back to a lockdown to avoid the spread of the various. Countries are beginning to restrict movement to and from South Africa. As of July 2021, there are four dominant variants of the Coronavirus.

On the weekly chart, the $SPX closed this week with a bearish candlestick. Looking at the 2020 chart of $SPX, especially before the spike in the cases of Covid-19 globally, the then all-time high in February 2020 was at $3384.11, the price fell to $2210.48 in March 2020. Since the lockdown, the price has been appreciating as price doubled since the lockdown has been eased. The support level at the second half of this year is maintained at $4284.31. The weekly charts show the candlesticks are still in the upper region of the Bollinger bands despite RSI showing that the price has been overbought. The bulls are still very active despite the correction this week. The price of $SPX might appreciate in the next few weeks, which might lead to a new all-time high above $4,800.

Some of these ideas are in our clients’ portfolios. To understand which ones can work for you or for help to invest for your own wealth, talk to our advisors at FM Capital Group. Would you like more information on Investment Advisory, Portfolio Services, and VC? Schedule a meeting with us here.

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SPX Might Lose Its Bullish Strength Temporarily

SPX is an American index based on 500 large companies listed on NYSE and NASDAQ exchanges. Many regard it as a haven. Many of the stocks in the SPX have reached new all-time highs in the last decade. Companies like Apple Inc, Amazon, General Electric, Facebook, Microsoft, Alphabet, Tesla, and many more are listed in the S&P 500. The market capitalization of SPX is valued at $38.2trillion as of June 30, 2021. S&P 500 has been on a long-term bullish trend over the last decade with only a few corrections. The most recent correction occurred during the pandemic, after which price continued the upward movement. The price of SPX in the year 2010 was at $1111.43, SPX’s price today is at $4,448.07, that’s about 4X over the last decade.

The all-time high price of SPX was at $4480.11 on the 16th of August. In April and July of this year, SPX shows that price has been overbought in the two instances. A correction to the downside might occur as stocks are beginning to fall in the past few days due to increasing cases of Covid-19. Price is currently consolidating at the upper region of the Bollinger bands. The next expected support could be at $4,212 i.e.SPX might lose about 300 points in the coming weeks. 

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QUICK TAKE: S&P 500

After the March 2020 crash, the $SPX staged an impressive rally (along with other US indicies) that took price to new all-time highs. After a shallow correction in September, the $SPX managed to stage another rally. However, this rally failed to take out the new August highs. This was the first signal that a move lower could possibly be in the works.

SPX 4 HOUR CHART

The 3400 level on the $SPX was former resistance marking the former highs in February of this year. So after the break to new highs in September, investors needed to see the 3400 level hold, now, as support. Each break below this level has seen price dip into the green zone of support between 3330-3350 with a move lower into the 3200 support level.

Yesterday’s weak close below the 3400 level was a second clue that lower prices were in store. The first signal was the failed high after price recovered back above 3400 the day before. Today’s gap lower at the open should move the $SPX to 3200. As we move into more uncertainty (as explained in yesterday’s analysis of $GBPUSD), this will be the level to watch. A move lower still will cause investors to panic and the Federal Reserve to act again.

Because of the monetary stimulus and central bank activity in markets right now, I honestly did not think markets would move lower. So it is nice to see this development today as I am a firm believer in natural market forces being allowed to prevail, no matter the pain. I know lol. So I welcome today’s price action. Price can move lower still and it would still only be a healthy correction of the past 6-month rally and move price into those Fib levels. That remains to be seen.

If you are interested in learning how to do fundamental analysis and find levels in your trading, please check out the CHARTS101 course. Read the charts for yourself so you can trade what you see and not what I think.

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ON THE AIR with F.A.C.E.

Today, I spoke live with over 200 traders in the Forex Analytix Community Experience (F.A.C.E.) about what the opportunities are in GBP for the new trading week ahead. With multiple pairs ending the previous trading week at major support levels, there were several great opportunities to share with traders live in the market on camera. That’s always great. I hope everyone who caught me live is doing some trade management now on those trades. We have some great moves already in the $GBPUSD and $GBPJPY. In case you missed it, do study the replay below.

If you are interested in learning how to find and use these levels in your trading, please check out the CHARTS101 course. Read the charts for yourself so you can trade what you see and not what I think.

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What Did I Say?

Well, so much for the market correcting 20%. I guess it is all in the timeframe you are using to describe last week’s price action. The $SPX dropped last week, 7 trading days in a row to be exact, to correct over 50% off the all-time highs, measuring from the bottom of the December 2018 market crash. This is what the market looked like last week before the Friday close.

SPX WEEKLY AS OF 27FEB20
Maybe it bottoms in the Fibs, but I would’ve given this market to the pink zone.

This is what it looks like after, the new trading week is underway.

SPX WEEKLY AS OF 04MAR20

Two weeks ago, I was on the air with Dale and he asked me what I thought about the coronavirus. I told him that I thought the market would in fact turn lower and it would be a buy-the-dip opportunity. I also got too confident and laughingly said that I just caused the top. Well, this is where we were when Dale and I chatted.

SPX WEEKLY CHART AS OF 04MAR20

Was it something I said? Of course not! It was just my luck that markets would finally react to the news of the coronavirus pandemic into Italy, Iran and the U.S. and the possible economic implications therein. As any technician would say (and I am not one), this is a healthy correction. The 50% Fibonacci level is a solid correction in any market. Now what would really frighten investors is if this bounce this week proves itself to be a dead cat bounce. That actually happened in that aforementioned December 2018 crash. To me, a move above 3200 in the $SPX really begins to signal that sellers have really cleared out of this market. Until then, we should remain cautious.

If you are interested in learning how I found these levels, please check out the course, CHARTS101. Read the charts for your Self so you can invest what you see and not what I think.

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ON THE AIR with Yahoo! Finance

I had the pleasure of speaking with the guys at Yahoo! Finance this past Friday. It was my first in studio appearance! Even though it was simply a live feed into the NYC HQ studio, it was very cool to visit the Yahoo! campus and record from a legit television studio.

As I mentioned on the show, I do believe the U.S. dollar can fall more from here as risk appetite continues to run through the U.S. equity markets. The $SPX continues to make all-time highs, making any downturn simply a correction at this point. Brexit continues to dominate sterling news despite the Parliament-majority outcome from this month’s general election in the UK. As such, watch the GBP continue to sell-off as the market has new concerns with HOW the UK leaves the EU in 2020. I also opined on how China and the U.S. election cycle could play out in markets and what traders and market participants need to watch for.

I had a good time at Yahoo. I got to take my eldest with me as my social media assistant and my producer treated us to a campus tour and lunch at the amazing Yahoo cafeteria. I look forward to speaking with the guys at The Final Round again in 2020.

Watch my full interview below. Enjoy!

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ON THE AIR with F.A.C.E.

On Monday, October 14, 2019, I joined Dale Pinkert on the Forex Analytix Community Experience to speak about the rally in the GBP at the end of the last trading week. I spoke about how the GBP had much more room to run given how the new turn of events in Brexit has changed the fundamental landscape for the GBP.

Unbelievably, all of my calls made on Monday have already been hit and this trading week hasn’t even ended yet. Better yet is news that hit the wires this morning that the EU has accepted the UK’s deal. Now, it is in the hands of the UK Parliament. Keep eyes on how this plays out. It will most certainly drive market flows in the short term for the GBP.

Check out also my levels and technical analysis during my segment and enjoy the show! Make sure you watch to the end to hear my commentary on the S&P 500 and equity markets.

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S&P 500 Might Continue The Dip

Some of the American stocks that had a strong bullish takeover are beginning to reverse in direction. This reversal might affect the $SPX. The $SPX price reached 2945 being our last analysis on $SPX in March shows it will reach 2946(https://faithmightfx.com/2019/03/13/sp-500-approaching-resistance/). That analysis was almost accurate. 2945 being the new resistance level of $SPX became the recent all time high price.

SPX Weekly Chart

A breakdown has occurred from the trendlines which shows a reversal has started. Price of $SPX is currently at 2765.5. The candlesticks have crossed to the lower region of the Bollinger band indicating the strength of the bears in the market. Ichimoku is yet to show a reversal of the uptrend. This time when price reached an all time high, RSI did not show us overbought positions. Also, the penultimate time $SPX reached an all time high in 2018, RSI never showed us overbought positions before a reversal. Though, this week, $SPX has shown the bulls might be trying to takeover. This might be a deceptive bullish move. Price might reach 2547 depending on the activities of the bears.

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S&P 500 Approaching Resistance

In the first week of October 2018, S&P 500 reached an all time high of 2946.97 before a reversal began. Before then, there was an indication of an oversold region in January 2018 on the weekly chart and price of $SPX moved downwards with 500points. Also, before the end of 2018, price was beginning to gain momentum through the active roles of the bulls.

Despite the selloff on the weekly chart, $SPX never showed an oversold position on the RSI before price rallied. A breakout from the trendlines which has occurred might be a strong signal for a bullish continuation move towards the resistance level. The future of Ichimoku has already given us a signal for a complete bullish takeover. In the second trading week of February, price of $SPX moved to the upper region of the Bollinger bands and it is yet to reverse. $SPX bulls might push price to 2946.97, the all time high.

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