S&P Keeps The Uptrend In Place – Want To Go Long?
Skerdian Meta • 1 min read
The S&P 500 has been following an uptrend for as long as the charts show. If you look at the daily S&P chart below, you can see that it has followed a very strict uptrend since November. However, the big trend started in early 2009, right after the 2008 global financial crisis.
At the moment though, we can´t trade the bigger uptrend since the price is overbought, with stochastic and RSI both overbought. The safest bet is to wait for a retrace lower to the 50 SMA (yellow) and then open a long term buy forex signal or forex trade.
There´s no day on the daily chart until we retrace lower to the 50 or 100 moving averages
The last time such an opportunity presented itself was about a week ago when the price was around 2415. The previous daily candlestick closed as an upside down pin which is a reversal indicator and the 50 SMA was providing solid support.
We missed that opportunity, so let´s have a look at the lower time frame charts to see if there is any trade setting itself up.
We could sell at resistance, but that would be going against the trend
The hourly chart shows another uptrend which has been happening over the last week or so. The 50 SMA is providing support here as well. Again though, the price is sort of overbought and a resistance has formed around 2463 in the last 2 days, so the buyers are not feeling that confident around these levels.
Similarly to the daily S&P chart, the best bet here is to wait for a retrace lower to the 50 SMA before buying. By that time, the technical indicators will have become oversold and the buyers will have recovered their strength.