The Uptrend Continues in S&P500, Rinse and Repeat

Stock markets have been retracing lower but they became oversold earlier so we decided to buy the pullback in S&P500

The 50 SMA is keeping the uptrend in place for S&P

The market sentiment got hurt a little during the Asian session on some geopolitical tensions in South Asia and stock markets retraced lower, while safe havens got a boost. That was a good opportunity to get long on indices before they turned bullish again and so we did, buying S&P500 a while ago.

S&P retraced lower to the 50 SMA (yellow) on the H4 chart and became oversold as the stochastic indicator shows. The 50 SMA has been a great place to go long from on S&P since it has been providing solid support since the beginning of this year when the stock markets turned bullish, despite being pierced a few times.

So, we waited for the price to reach the 50 SMA and the retrace lower to be complete. The uptrend needed a reason to refresh and the reason came from Asia this morning. That was enough to refresh the trend lower in stock markets and now the refreshing is over since the retrace is complete. Jerome Powell’s comments seem a bit more hawkish than in the previous speeches and the sentiment is improving now, so that’s great for our trade in S&P. Now we well in profit with this signal.

ABOUT THE AUTHOR See More
Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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