The S&P 500 continued its spring off recent lows, but found a bit of resistance around the January 10 low. What I will be watching for in the week ahead is if that recent high can maintain or at least maintain on a closing basis.
A close above 4595 could open up more room for further gains, but those gains will still be viewed through a skeptical lens as the broader technical picture has weakened quite a bit. In the week ahead we may not see the market have a meltdown, but rather bobble around as the market makes sense of the recent volatility.
In due time, though, risk looks high that we will see the market roll over in a meaningful manner that takes out the January low at 4222 by a wide margin. A head-and-shoulders top, with the left shoulder in September and head in January, could develop if we see recent highs hold or thereabout, creating the right shoulder.
It will take a sizable drop below the Jan low will need before triggering the pattern, but it is certainly a possibility . The right shoulder needs a little more time to mature for the sake of creating better symmetry on the pattern, hence the thinking that we may not be ready yet to roll over.
Overall, though, the general trading bias on this end leans neutral to bearish.
A close above 4595 could open up more room for further gains, but those gains will still be viewed through a skeptical lens as the broader technical picture has weakened quite a bit. In the week ahead we may not see the market have a meltdown, but rather bobble around as the market makes sense of the recent volatility.
In due time, though, risk looks high that we will see the market roll over in a meaningful manner that takes out the January low at 4222 by a wide margin. A head-and-shoulders top, with the left shoulder in September and head in January, could develop if we see recent highs hold or thereabout, creating the right shoulder.
It will take a sizable drop below the Jan low will need before triggering the pattern, but it is certainly a possibility . The right shoulder needs a little more time to mature for the sake of creating better symmetry on the pattern, hence the thinking that we may not be ready yet to roll over.
Overall, though, the general trading bias on this end leans neutral to bearish.
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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.