Blue Sky Breakout| Price Discovery| Correction Imminent!
Hello Traders!
Today’s chart update will be on the S&P 500 Index which has clearly broken it’s all time high and now is currently in a blue sky breakout.
Points to consider,
- Overall trend bullish
- Key resistance broken
- 200 MA is support
- Stochastics in upper regions
- RSI trading in overbought
The S&P 500 chart is has been extremely bullish by putting in consecutive higher low, signalling that bulls are in complete control.
From a technical aspect, a key resistance has been broken, now probable support upon re-test, confirming a potential S/R flip.
The 200 MA is supporting price, bullish when the S&P 500 supports price, this signals that bulls are defending the line.
The stochastics is currently in the upper regions, can stay here for an extended period of time, however lots of stored momentum to the down side. RSI is trading in overbought conditions, it is highly probable to return to neutral territory as it is overextended.
Overall, In my opinion, the S&P 500 is way over extended as its enters its blue sky breakout. A correction or consolidation will be imminent before another leg up?
What are your thoughts?
Please leave a like and comment,
And remember,
In trading, everything works sometimes and nothing works always.”
Today’s chart update will be on the S&P 500 Index which has clearly broken it’s all time high and now is currently in a blue sky breakout.
Points to consider,
- Overall trend bullish
- Key resistance broken
- 200 MA is support
- Stochastics in upper regions
- RSI trading in overbought
The S&P 500 chart is has been extremely bullish by putting in consecutive higher low, signalling that bulls are in complete control.
From a technical aspect, a key resistance has been broken, now probable support upon re-test, confirming a potential S/R flip.
The 200 MA is supporting price, bullish when the S&P 500 supports price, this signals that bulls are defending the line.
The stochastics is currently in the upper regions, can stay here for an extended period of time, however lots of stored momentum to the down side. RSI is trading in overbought conditions, it is highly probable to return to neutral territory as it is overextended.
Overall, In my opinion, the S&P 500 is way over extended as its enters its blue sky breakout. A correction or consolidation will be imminent before another leg up?
What are your thoughts?
Please leave a like and comment,
And remember,
In trading, everything works sometimes and nothing works always.”