S&P500: Consolidation Ahead

Technicals | Aug 30 2022

By Michael Gable 

The bounce in stock prices is a memory now and we are back to seeing a lot more cautiousness in the market.

We have an updated chart of the S&P500 Index in today's report to further show how we are seeing it all play out.

Despite the market looking more bearish again, energy stocks continue to look strong. Last week, we made the point that energy stocks were on the move again and we had a few buying opportunities.

We turned positive on the S&P500 Index in July. Our commentary since then has noted that it needed to clear 4200 and then the next stop was the 200-day moving average, which would offer strong resistance.

We can see that the market has clearly found resistance at the 200-day moving average (blue line) and is now consolidating. The risk for now is the downside, but having said that, the strength of the June-August rally suggests that the June low may hold.

We are likely to see the S&P500 Index consolidate further for a few more weeks before we get the next turning point.

Content included in this article is not by association the view of FNArena (see our disclaimer).
 
Michael Gable is managing Director of  Fairmont Equities (www.fairmontequities.com)

Fairmont Equities is a share advisory firm assisting Private Clients with the professional management of their share portfolio. We are based in the Sydney CBD but provide services to private clients across Australia. We believe that the concepts of fundamental analysis and technical analysis of stocks are not mutually exclusive. Regardless of whether you are a trader or long term investor, combining both methods is crucial to success. As a result, the unique analysis of Fairmont Equities is featured regularly in the media such as Sky News Business, CNBC, The Australian Financial Review, and the ASX newsletter. Contact us for a free trial of our research and information on our portfolio management services. 

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

Disclaimer

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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