Technicals | Jul 26 2022
By Michael Gable
We have been anticipating a push above 3900 in the S&P500 Index to trigger a possible rally, and we finally got that last week.
It is hard to picture a long-term recovery from here with central banks not only raising rates, but the path of rate rises still being very uncertain.
However, the odds are that we at least get a "bear market rally" from these levels as a counter to the high levels of fear around markets and the economy.
In today's report we have a chart of the S&P500 Index.
After the low in mid-June, the S&P500 Index retested the old support line near 3900 before coming back in putting in a higher low. Last week, it broke above that major level and has so far been able to hold on. It is also now trading above the 50-day moving average, which is a positive sign.
The odds are that we get a recovery from here in the S&P500 Index. It is too early to know if an ultimate low is in place though, but for the short-term at least, we should expect a move back up towards 4200. A break under the low from July would be a negative.
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Michael is RG146 Accredited and holds the following formal qualifications:
• Bachelor of Engineering, Hons. (University of Sydney)
• Bachelor of Commerce (University of Sydney)
• Diploma of Mortgage Lending (Finsia)
• Diploma of Financial Services [Financial Planning] (Finsia)
• Completion of ASX Accredited Derivatives Adviser Levels 1 & 2
Fairmont Equities Australia (ACN 615 592 802) is a holder of an Australian Financial Services License (No. 494022). The information contained in this report is general information only and is copy write to Fairmont Equities. Fairmont Equities reserves all intellectual property rights. This report should not be interpreted as one that provides personal financial or investment advice. Any examples presented are for illustration purposes only. Past performance is not a reliable indicator of future performance. No person, persons or organisation should invest monies or take action on the reliance of the material contained in this report, but instead should satisfy themselves independently (whether by expert advice or others) of the appropriateness of any such action. Fairmont Equities, it directors and/or officers accept no responsibility for the accuracy, completeness or timeliness of the information contained in the report.
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