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  • Writer's picturePeet Serfontein

Analyst Thoughts: S&P500 Medium-Term


  • Preferred Analysis: The chart presents a clear narrative, elucidating the S&P 500 Index's current trajectory. We are at a juncture where the index is testing a significant resistance cluster. Adding to this critical moment is the Relative Strength Index (RSI), which is signalling an overbought condition alongside a discernible divergence at line D. This suggests that we should be on the lookout for potential signs of a trend reversal.

  • Alternative Perspective: On the bullish side, breaching the resistance marked as R* could unleash further upward potential, targeting the upper threshold at T2. A successful break above R* would underscore the strength of the bullish forces at play, possibly challenging the upper resistance zones.

  • Key Levels to Monitor: The resistance at R* and support at S* are pivotal markers for the index's path forward. These levels serve as key indicators for market sentiment and trend strength. A definitive move past S1 would validate the bearish WXY pattern, possibly heralding a more substantial pullback or correction.

  • Conviction Outlook: The confidence in this technical analysis ranges from medium to high. This is based on the well-defined technical indicators and the index’s historical response to such patterns. It's important to proceed with caution, however, as market conditions can be influenced by variables beyond the scope of technical analysis.


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