Post by
drbob512 on Jun 14, 2020 4:01pm
T.A. for S&P500 Friday:
S&P had gotten very oversold on Thurs (Dow down 1861 pts) so a technical bounce on Fri was not surprising to reset, so the Dow rallied 800+ pts early but gave it all up, then rallied very late but the ST controlprobably remains with the bears. Daily stochastics are crossed down @ 45% & dropping fast while daily Parabolic SAR remains well above the price, another bearish sign. On the positive side, the weekly indicators are neutral to positive and the pattern has not yet seen a lower high & lower low being set. Some analysts believe the top of the mkt has been set but that has not yet been confirmed by a lower high. Gaps are below at about 2960 and 2860, and one above at about 3190. SAR at 3228 & declining. Tug of war in ST could be decided by mid wk or end of wk and gap at 2960 likely to fill on any weakness. Will bulls keep buying the dips and this current drop? Will the FRB's massive liquidity keep the mkt from becoming a bear? Is there still a lot of money mkt funds looking for risk-on assets (stocks)? Until proven otherwise, the IT trend is bullish while the ST is neutral to bearish.