Hodl, dear members of LeoFinance!
As I said yesterday, I mainly talk about cryptocurrency price charts. But, of course, I keep an eye on the prices of the other major assets, as well, because most financial markets are somehow connected. For example, yesterday I commented on the price chart of Gold. That's why let's talk today about the major U.S. stock market index, namely, S&P 500.
First, in the monthly time frame (MN), there is a sequence of very interesting and to some extent controversial candlestick formations. For example, in September a Bearish Engulfing formed (common bearish/trend reversal signal). However, it was revoked in the next month of October because a Bullish Engulfing (common bullish/trend reversal signal) formed and the price continued to increase:
Next, in December, a bullish candlestick formed. A signal indicating that the bulls continue to control the market intra-month.
However, if we look at the weekly time frame (1W), we can see that a Bearish Engulfing has formed for the current week:
So, theoretically, in the weekly chart, there is a bearish signal presaging a short-term correction. Nevertheless, this signal is a bit tricky. The local high of the bearish candlestick is higher than the local high of the bullish candlestick. But, there is no doubt, that the bulls should be very cautious.
If we have a look at the daily chart (1D) we can see that all key Moving Averages, namely, the 22-day Moving Average (MA 22), the 66-day Moving Average (MA 66), and the 200-day Moving Average (MA 200) are heading upwards:
So, we can draw a conclusion that the uptrend continues. But, I would like to highlight that, at the moment, the price is starting to test MA 22. This is a small challenge for the uptrend in the short run.
If we look at the daily chart (1D), or the 4-hour chart (4H), we receive a confirmation of the uptrend as well - there is a clear Ascending channel (uptrend):
That's why for now the bullish sentiment remains, according to all major time frames. However, the investors/traders should constantly keep an eye on the price chart because the financial markets can change very fast.
To be continued ...
As of the time of writing, SPX is at the level of $4677,04, according to TradingView.
A few words about me:
Just to let you know: I've been working professionally as a currency analyst for the last 15 and a half years and as a cryptocurrency analyst for the last 4 and a half years.
Important!
Keep in mind, that thoughts expressed here are my own, and they should not be regarded as recommendations for any cryptocurrency/commodity trades, investments and etc.
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