Technicals | Aug 23 2022
By Michael Gable
We commented last week that the S&P500 Index would likely touch the 200-day moving average and then consolidate for a few days.
This is now occurring, so after seeing our local market rally for five straight weeks, we should now expect it to cool off here.
Whilst it is too early to consider any specific downside targets, as we have been saying for a while now, the market will struggle to make serious progress while the number of interest rate rises ahead of us is still uncertain.
We should expect a few months of sideways markets here at best, and it remains to be seen how deep any of the dips are along the way.
In the meantime, we are seeing early signs of strength in the oil price and oil stocks in general. This week's report has a chart on Woodside Energy ((WDS)).