Below is a monthly chart of the SP500 index shown in grey bars. Overlaid on the price chart are 3 indicators I use to confirm the trend change. Right now we have 2 out of 3 showing a negative divergence to the SP500 price trend. The upper level indicator is the RSI (Relative Strength Index) and it is hovering around the 50% level which is neutral. The lower boxes are Stochastic, MACD and cumulative NYSI indicators. All of which are neutral at the moment.
The chart shows price momentum trending sideways. The market is likely going to be in limbo until after Christmas unless a major bit of news, good or bad, comes out of Europe or the Fed. The key line in the sand for the moment is the 20 month moving average shown as a gold dotted line.
Caution remains the prudent position for the moment.
No comments:
Post a Comment