S&P rally continues; will we see new high?
After confirmation of control in the first days of May, bulls enjoyed their dominance. The market opened with a gap up on Monday, rallied throughout the entire week, and closed very strongly within the top value area. There was some profit-taking on Monday, but sellers were not able to push the price even below the previous day's high. At this stage, there are no major warning signs for the buyers. On the other hand, there are many signs that confirm their strength:
1. Price is in a daily uptrend, aligned with higher level context (weekly/monthly uptrend).
2. Two unfilled gaps (Friday the 3rd and Monday the 6th).
3. Strong close of the week within the top value area (price has retraced >80% of April’s bearish wave).
The only technical weakness on the chart is the monthly consolidation. Bears might try to defend April’s high (524), but unless they receive support from economic reports coming this week, their position looks very vulnerable.
An important level for the bulls is 515, where the price pivoted on Wednesday after a pre-market sell-off. Important economic data will be released on Tuesday and Wednesday, which could cause volatility in both directions. But as long as there are no major negative surprises, pullbacks are buying opportunities
Disclaimer
I don't give trading or investing advice, just sharing my thoughts.
1. Price is in a daily uptrend, aligned with higher level context (weekly/monthly uptrend).
2. Two unfilled gaps (Friday the 3rd and Monday the 6th).
3. Strong close of the week within the top value area (price has retraced >80% of April’s bearish wave).
The only technical weakness on the chart is the monthly consolidation. Bears might try to defend April’s high (524), but unless they receive support from economic reports coming this week, their position looks very vulnerable.
An important level for the bulls is 515, where the price pivoted on Wednesday after a pre-market sell-off. Important economic data will be released on Tuesday and Wednesday, which could cause volatility in both directions. But as long as there are no major negative surprises, pullbacks are buying opportunities
Disclaimer
I don't give trading or investing advice, just sharing my thoughts.
Comment:
Strong market, strong closure of the day. Now, it all depends on inflation data tomorrow. If no surprises, we might see new historical high
Comment:
Crazy bull run. Buyers have cleared April's high, putting end to monthly consolidaton
Comment:
Thursday closed with some bearishness but nothing alarming. At the worst we might see some short term daily consolidation.
Comment:
Sellers were able to break Thursday's low, triggering daily consolidation. However, there is a clear lack of conviction to push prices down further. By the end of the day, the price returned to the previous day's range. This move formed a higher low on the hourly chart, which buyers will find encouraging.