Technicals | Feb 21 2023
By Michael Gable
The US market was closed overnight, but the S&P 500 Index continues to pull back in an orderly manner.
Locally, the S&P/ASX200 Index is pulling back in a sharper manner because of the January rally, but we are not seeing any heavy selling across the board. Reporting season is offering some weakness in selected stocks, but we are not seeing the type of selling that characterised 2022.
If anything, there is a lack of buying pressure as opposed to indiscriminate fear-based selling. This is a positive sign and it means that we can look for opportunities for when the market finds its feet again.
Today's research has charts on the S&P 500 Index.
The index broke above the downtrend line at the end of January and then peaked near 4200.
Since then the pullback has been very corrective and is now resembling a bull flag. This is a positive sign and implies that there is another move higher in the index.
If the index breaks above 4150, then the next target would be 4300 before we will reassess.
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
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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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