The first chart is an SPX daily chart that shows bullish intermediate-term indicators. The CPC 50-day MA (above price chart) fell from 1.08 Monday to 1.05 Friday, while the NYMO 50-day MA (below price chart) continues the uptrend (other indicators not shown also show similar bullish patterns). Also, SPX has recently made higher lows and higher highs (the SPX high Friday was 1,280.42). The second chart is an SPX monthly chart. Monday is the end of July. If SPX closes above 1,285 Monday, the MACD indicator (below price chart) may close the month maintaining the bullish crossover. Also, SPX has closed each month above the middle Bollinger Band, since rising above that level after the cyclical bull market began. Money Flow (above price chart) increased and remained positive in July. SPX closed at 1,278.55 Friday. Currently, short-term technical indicators show SPX is severely overbought. So, if SPX closes Monday above 1,285, to maintain the monthly bullish MACD, it may fall to at least 1,261 key support later in the week, although the first few days of a new month tend to be bullish. Also, the FOMC announcement is August 8th (a week from Tuesday). So, next week may be volatile. Free charts available at http://www.peaktrader.com Forum Index Market Forecast category. |
