I’ve spent so much time managing gold miners (for fundamental and technical reasons) and the remote work/communications/commerce/healthcare stocks (for obvious reasons, in NFTRH not here on the public site) that other than each week in NFTRH the old wonder pig, SPX, has not gotten much airplay.
So let’s stare at the daily chart of SPX as the market cheers the Gilead Corona treatment news and the disastrous GDP news (with all those implied monetary & fiscal fire hoses aimed at it).
Here we find SPX having touched its 62% Fib retrace today. That is a logical termination point. So too is the SMA 200 at 3000, which would also neatly fill the second to last gap (or is it last gasp?).
Okay doomer, that’s the negative, the reflection of what has been rising risk the higher the relief rally climbs. The positive is that a non-overbought RSI is in good standing in a rising trend above its EMA 20. MACD has gone positive and AROON has flipped trend up.
Now, I have an eventual post-relief downside target of 2030 to 2100 that has not been hit, but SPX’s tick into the 2100s sure had seemed like a remote possibility to most people at the turn of the new year. So, that was a massive flush and I could be wrong on the ‘next leg down’. We’ll just have to wait and see how the macro shapes up (again, did someone say asset-pumping monetary & fiscal fire hoses?). The next decline could just be a re-test of some kind (hello 2 gaps down there).
And so there you have the current daily chart view of one man staring at it.
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