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
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
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.
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