Market Direction and Stock Trends

[DiscoverGold]

Weekend Analysis by Amateur-Investor.Net
By: Amateur-Investor | May 18, 2019

The S&P 500 held support early in the week near the 23.6% Retrace which was just above the 2810 level. Thus was then followed by a decent oversold bounce.

An intra day chart shows the S&P 500 almost rallied back to the 61.8% Retrace (calculated from the 2800 low), after breaking above its downward channel.

One thing to watch for next week is a potential Head and Shoulders pattern with Neckline support at the 2800 level. For this pattern to play out the S&P 500 would have to test the Neckline early in the week. If the Neckline were to be taken out then the next support level is in the 2767 to 2722 range. 2767 is at the 100 Day MA (green line) while 2722 is at the 38.2% Retrace.

Finally, the last thing I would like to point out, is a longer term chart of Mutual Fund Cash adjusted for Interest Rates. As you can see below, when the Cash levels have dropped below 1% (points A) typically market tops have followed.

Read Full Story »»»

• DiscoverGold

Click on "In reply to", for Authors past commentaries