S&P 500 Momentum Update 05/31/22

The daily S&P 500 (SPX) chart courtesy of Trading View illustrates  action of the RSI momentum indicator.

The highest daily SPX closing level after the 05/20/22 bottom was made on 05/27/22 with an RSI reading of 53.72.  This  is  higher than the reading  made on 04/19/22 – the highest SPX closing level for the 04/18/22 to 04/21/22. The higher RSI reading at a lower SPX price implies the SPX could soon rally to near the price level made on 04/19/22.

The hourly SPX chart zooms in on the shorter-term momentum.

 A  Fibonacci .236 retrace of the SPX rally from 05/20/22 to 05/31/22. is  at  4083.85.  There’s a secondary Fibonacci point at 4081.60 which could be the termination area  for an Elliott wave – Expanding Flat corrective pattern that began on 05/27/22.  Depending on market action a future blog will detail this potential corrective pattern.

The two close Fibonacci coordinates imply strong  support in the 4085 to 4075 area.

Traders  are  long 100% non-leveraged SPX related funds. Continue holding long.

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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