SPX500 Remains in Long-Term Uptrend

  • SPX500
    (${instrument.percentChange}%)

Weekly Context

Below we have added a triple moving average system to the SPX500 weekly chart. Despite the decline last week, the shorter-term green moving average is above the mid-term orange moving average, and the mid-term orange moving average is above the longer-term red moving average. Last week's pullback took place within this longer-term bullish formation. The weekly stochastic is above 80 and suggests an underlying bullish momentum (aqua arrow).


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Daily Context

Nevertheless, the pullback did cause damage to the daily chart. The shorter-term green moving average has crossed below the mid-term orange moving average, but the mid-term orange moving average remains above the longer-term red moving average. Moreover, the daily momentum has waned, as per the decline in the stochastic from the upper area. Given that the longer-term weekly chart remains in a bullish stack, last week's pullback may be a potential "dip in the uptrend."


Past Performance: Past Performance is not an indicator of future results.

Hourly Context

For the "dip in the uptrend" scenario to unfold, the hourly chart must setup bullishly. In this regard, the shorter-term green moving average is above the mid-term orange moving average, and the mid-term orange moving average is above the longer-term red moving average. This has been charted (aqua ellipse). Moreover, the hourly momentum has an upside bias, as seen by the positive stochastic positioning (blue rectangle). However, the EMAs need to develop an angle and separation, and the stochastic needs to maintain its bullish position. If these chart, market participants are potentially supporting the index after last week's decline.

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Past Performance: Past Performance is not an indicator of future results.

Featured Image by Gerd Altmann from Pixabay

Russell Shor

Senior Market Specialist

Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.

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