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Writer's pictureLester Davids

S&P 500 INDEX. Down by 280 Points From Model Reading. Well Done, Short Sellers

Trade the S&P 500 Index with Unum Capital.

To get started, email lester@unum.co.za


On 05 December, an check-in/analysis of the Tactical trading Guide for the S&P 500 index showed that the index was trading in a high bullish momentum regime while also approaching overbought levels. Specifically, the long term (5 to 8 week reading) stated the following: "There is aggressive, but the index is overbought on the lower time frame. Expect a consolidation or minor retracement/pullback".


(To view the original post, scroll down on this page)


The current pullback of around 280 points is in line with the model reading, with the S&P 500 trading at it's lowest level since 06 November.


What's important to note here?


  • 5860 has been breached.

  • This has been where buyers have been most confident for close to 2 months. This no longer seems to be the case.

  • Trading below declining 8, 21-EMA's.

  • Has breached the 75-day EMA. Is at risk of breaching the 21-week EMA.

  • Deteriorating candle structure.


S&P 500 Index Daily Chart as of Friday at 19h18 (South African Time / U.S. Trading Session)

 

Previous Post: S&P 500 INDEX Risk of Medium Term Retracement


Thursday 05 December 2024 (Time: 21h49)



Lester Davids

Analyst: Unum Capital

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