Post by
Snowballer on Jul 10, 2022 12:52pm
S&P500 Going To Rally Here?
Higher low (similar to that of bottom in 2020) on the daily chart and sentiment indicators extremely low. Also green candles moved above the 50DMA and the MACD on the daily chart crossed June 24th for the index. But until the downtrend channel is broken (hitting around the $4,000+ mark it's hard to say I think. But so many are bearish it could be time for a surprise move in the other direction. And earnings may be stronger than many think.
So here's a question: Does capital flow out of energy and move into the less risky less hated sectors? The multiples in the other sectors have been seriously compressed and this is the buying zone I think people may start to (have already started) to accumulate. But the same could be said for oil stocks.
The only positive I see technically is that some of the oil stocks like BTE have bounced off the 200DMA but some like WCP have hit its head on the underside of the 200DMA.
So if WCP moves past $8.90 and stocks like BTE, CJ, MEG rally and break up through the decending triangle (downtrend line) I think we have an reversal (at least temporarily) and the MACD on the daily should cross over not just on the oil stocks but on the WTI oil chart itsef.
Comment by
Cobalt on Jul 10, 2022 6:27pm
Earning and forcasts Kick off will trump TA they looking for earnings to roll over then we would have to bring the PE down again if they hold up bottom could be in or not ;)
Comment by
Nothingmatters on Jul 10, 2022 6:43pm
Bottom is when i say it is the bottom... i will let you know