S&P500 trend strength is likely to continue

At present, the media is awash with the idea that the S&P is in danger of imminent collapse, but this recent talk is just as specious as the Hindenburg omen in 2014, which had to predict the collapse. Subsequently, the S&P added 33 percent.

Markets do not just collapse suddenly or because they have reached some magical number. Most often they give clear signals of weakness and it appears at the end of a structural trend model.

According to technical analysis there are different formations that precede the end of trend. The most common of these are "reversal head and shoulders", "Rounding top" significant and sudden compression in the long term moving average,s "breakthrough a major trend diagonal support "," break below critical support levels" and a large increase in the VIX, which shows that the market expects a significant change in trend.

Careful analysis of the S&P chart shows that there are no signals and patterns for an end to the trend. However, this does not rule out the potential for a retracement and consolidation. This behavior is common in all uptrends and provides a good buying opportunity.

Investors expect a possible test of short-term GMMA near 2300. Rebound from this level will provide good opportunities for buy and subsequent upward movement.

Source: CNBC

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