Charting the S&P 500: Ready for a Move to Higher Ground
The venerable index is trying to penetrate the resistance line and might just do it this week.
You're reading 0 of 1 free page.
Register to read more or Unlock Pro — 50% Off Ends Soon
With a big surge this coming week the bulls could really take control of the market as the S&P 500 is on the cusp of moving to a "safer" place. That area is the uptrend channel we drew in many months ago. As you recall, the index fell out of that channel earlier this year, which signaled bearish action was on its way (arrow = serious breakdown).
Candles are still amber colored, which means neutral on the GoNoGo composite of indicators. But after a very long wait the MACD (moving average convergence divergence) has finally crossed for an important bullish signal. This indicator tells us a change in trajectory before it occurs.
Recall that the MACD rolled over in late 2024, before the massive move lower just a few short months later (from December to April). Stochastics (momentum) has started to turn upward but money flow still is not convinced this new uptrend is for real.
This being the last trading week of May, it sets up an important few trading sessions. Can the bulls close out the month on a positive note? The evidence seems to lean in that direction.
