Amid the FED’s rates decision and economic Projections for the coming 2 year period, the US stock market has been accumulating in the new recent highs, preparing and signalling for a big directional move.
Which will be the result of it??
Let’s take a look at the S&P 500 which has been one of the most representing products of the current US Market state.
S&P is forming a wedge pattern near its new highs in the 4hour timeframe.
If it is combined with a negative divergence from the MACD indicator then a bearish setup is imminent.
This formation could only be activated with a break of the low trendline.
On the other hand, Bulls could say the same thing as we have not only broken to new all-time highs but we are now in a testing phase before potentially moving even higher.
The Daily chart is indicative of the situation in play.
As long as this level holds then buyers are under control.
A sharp move lower could change the balances but it would be required to capitalize it in a daily time frame.
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The next 24 hours would be vital not only for the technical side of the market but also for its fundamental aspect.
Extreme volatility is expected, make sure to take care of your position size and your risk exposure.
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