Speculation about the imminent collapse of the S&P 500 continues. This speculation is based on a fear of heights. The speculation uses the same reasoning that has forecast a collapse of the S&P when it was at 2,250, and then at 2,350. This is just based on fear of heights and has no relationship with the actual trend behavior of the S&P.
The S&P will develop a correction in the trend and this will be a buying opportunity to join a continuation of the uptrend. The S&P shows steady, sustained and continued trend behavior for all of 2017. Those are the key features traders need to concentrate on, and the trend is well defined using a Guppy Multiple Moving Average indicator.
The S&P index has not moved below the lower edge of the short group of moving averages at any time since 2016 November. This shows an even stronger uptrend than the S&P trend between 20012 and 2015.
Rather, analysis of the S&P chart shows a very strong and stable uptrend with no end-of-trend patterns. However, this does not rule out the potential for a retracement and consolidation. That behavior is common in all uptrends and provides a good buying opportunity.
Source: Bloomberg Pro Terminal
Junior Trader Stefan Panteleev
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