Trending
Stocks
  • AMZN
    92.43 USD -1.63%
  • AAPL
    141.18 USD -2.11%
  • NFLX
    280.99 USD -0.07%
  • NVDA
    156.41 USD -1.19%
  • TSLA
    180.85 USD -1.14%
  • SP500
    3958.03 USD -0.16%
  • FB
    184.02 USD -6.43%
  • MSFT
    240.35 USD -0.59%
  • BRKA
    475890.58 USD 0.66%
  • T
    19.01 USD 1.01%
  • ADBE
    326.81 USD -0.67%
  • MMM
    126.14 USD 1.2%

Are the indices done with the correction?

Today we will briefly look at the two main indices, S&P 500 and NASDAQ. In the past articles we have talked about possible correction, which was quickly brought back up. What are the charts currently showing and is there a reason to be worried?

S&P 500

Looking at S&P 500, the entire correction seems to be erased. This is exactly the type of movement that S&P 500 tends to do. Once every 30 to 35 days, S&P 500 falls down just to be brought back up and continue to attack the previous ATH. Just a very quick correction. And that is also what happened now.

It might look horribly on the 4h chart, but on the daily chart we have not invalidated any important levels or structures. We did not close below the trendline and we even did not create a new LOW. Thus, there is no reason for any worries when it comes to S&P 500. When it comes to trading, a long position might be more suitable for the current situation, but entries to the position might be a bit more complicated. If we fall down a bit, an interesting entry to the position might be around 4 604 – 4 622.

S&P 500 4h chart S&P 500 4h chart

NASDAQ

NASDAQ is not as bullish as S&P 500, but we can also see that the support was only touched and then brought back up. Yet, if there is a movement to levels of 189 and 197, it would not be anything surprising. But even this movement shows, how bullish the current situation is for indices. There was no hesitation around the support level and the reaction – the upward movement – came quickly. NASDAQ is still not as close to reaching its ATH as S&P 500 is, but the same movement is expected there.

NASDAQ 4h chart NASDAQ 4h chart

Conclusion

It looks like the correction is over and we can go higher to maybe even create new ATH. Indices are still only creating a higher lows and higher highs. This is very typical for a bull market. If all these structures and principles are in line, the talks about bear market are unreasonable.

Jakub is a crypto trader and founder of Trader 2.0 project, which helps hundreds of traders from central Europe to understand cryptocurrency trading and its challenges. Jakub not o...

Comments

Comments are closed.