SPX/USD Daily neutral with a bearish bias. *St. Louis Fed President James Bullard said he remains committed to a 3.5% fed funds rates at the end of 2022 with potential for rate decreases in 2023; Fed Chair Jerome Powell also said Fed would not hesitate to raise rates beyond what is considered "neutral" until inflation comes back down; unemployment remains low but economic growth is slowing and inflation is rising, so the case for stagflation isn't necessarily getting weaker.* Recommended ratio: 45% SPY, 55% cash. Price is currently testing $3938 minor support-turned-resistance after briefly touching $3800. Volume remains moderately high and has been fairly balanced between buyers and sellers for the past six sessions. Parabolic SAR flips bullish at $4035, this margin is mildly bullish. RSI is currently trending up at 40.68 and is still technically testing 38.06 resistance; it should be noted that RSI recently defended support at both uptrend lines from August 2015 and January 2022, this is bullish. Stochastic remains bearish and is currently on the verge of crossing over bullish at 36.31. MACD remains bearish and is currently trending up at -107, if it can break above -103 then it would be a bullish crossover; the next resistance is at -76.22 while the next support is far below at -226. ADX is trending up slightly at 30 as Price is currently avoiding a breakdown to $3706, this is neutral at the moment. If Price is able to reclaim minor support at $3938 then the next likely target is a retest of the lower trendline of the descending channel from July 2021 at ~$4100 as resistance. However, if Price breaks down here, it will likely test $3706 minor support before potentially heading lower to $3508 minor support. Mental Stop Loss: (two consecutive closes above) $3938.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.