Bullish Continuation

Since the 03/29/22 peak the S&P 500 (SPX) has not been able to rally more than three trading days. Today 05/26/22 was  the fourth rally  day since the most recent SPX  decline bottom made on 05/20/22. When something different happens in a market or stock its usually evidence of a trend change – in this case up.

The SPX daily chart courtesy of Trading View illustrates  the recent action.

The 05/26/22  RSI reading was  47.67, nearly the exact level of 47.68 made on the SPX 05/04/22 peak near a Fibonacci .50 retracement of the SPX January 2022 to May 2022 decline.  Today’s SPX daily RSI reading  forecasts  price could rally to at least this important resistance zone.

Traders  are long  50% SPX related non- leverage funds with a stop loss on an SPX move below 3795.  Raise the stop loss on the 50% position to a move below SPX 3875.13.  Traders  initiate an additional 50% position on non-leveraged  SPX related funds at the open of  SPX trading   05/27/22.  Use a move below SPX 3970.02 as a stop loss for the additional 50% position.       

Published by Mark Rivest

Independent investment advisor, trader, and writer. Articles have appeared on Technical Analysis of Stocks and Commodities , Traders.com Advantage, Futuresmag.com, and Finance Magnates.

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