S&P500 has been making new all-time highs for eight straight days and has generated more than 300 points from its mini correction! Similarly, the other US Indices have been performing extremely well in the last 2 weeks.
The well-known saying “Sell in May and go away” transformed into “Buy in June and go to the Moon”.
But how long will this rally continue?
Is it infinite?
Are there any targets?
Unfortunately, nobody can say with certainty where or when this rally is going to end.
The sky is truly the limit!
However, with the help of technical analysis and the current geopolitical events that take place right now, one must be prepared for sharp moves on both sides.
In the Daily midterm scope, S&P500 is looking strong, however, there are two main concerns.
1) Price is starting to get close to the upper part of the upwards channel.
This is going to provide a possible reaction.
2) There is a bear divergence in the MACD indicator, signalling that this rally may be nearing an end.
Traders that look at this as a solid setup, should not forget that as long as the price is above the 4270 levels, bulls are still in control.
Dropping down in 1Hour timeframe, things are even more difficult, to find anything that keeps this Index from making another pop to the upside. And based on its main short term trendline, until it breaks with a solid confirmation nothing indicates a downward move currently.
Closing, as the US indices rally higher and higher, it is vital to take care of your current positions as we are deep in the summer and volatility on the markets is not calming down. This is a sign that there are a lot more big moves to come, so stay focused and alert!
Disclaimer
The views expressed do not constitute investment or any other advice/recommendation/
suggestion and are subject to change. Reliance upon information in this material is at the sole discretion of the reader. Opinions expressed in the report do not represent the opinion of ZuluTrade Social Trading Platform and do not constitute an offer or invitation to anyone to invest or trade. Every metric and the statistical number is a result of a past performance, which does not constitute a promise or a certainty for a future one.