S&P500 weekly chart remains weak: correction ongoing.

Since late-February, see here, we were one of few that have been correctly foretelling of the ongoing market correction, and haven remained that POV, as it has now lasted 27 days.

The Russell2000 underscores our story and POV: it is the small caps index and indicative of a “risk-on” vs “risk-off” market. It has been flat all year and its YTD performance is a whopping +0.55%. Compare that to the S&P500’s 5.2% and the NASDAQ’s 9.2% and it’s clear we’re currently dealing with a risk-off market: correction. However, the flat price over the past months also tells us the uptrend will eventually resume; in line with our preferred view of the market.

rut daily

Moving on to the weekly chart of the S&P500; it also shows weakness –i.e. down pointing- TIs: the weekly A.I. remains on a sell, and will only turn back up on a weekly close >SPX2390. Our proprietary indicator has clearly kept us on the right side and view of the market 🙂 (see here for trading performance).  We also observe the MACD is about to give a sell-signal cross over, which over the past years always led to further weakness short term, but not long term (e.g. see blue vertical lines). Given that there’s no negative divergence as in 2014-2015 on the MACD; we expect the market to move higher longer term, which fits with our preferred POV (major 3 at ~SPX2500, major 4 to ~SPX2300, major 5 to ~SPX2600) and with how the weekly SMAs are aligned: all are pointing up and all are bullishly stacked (20>50>100>150>200). Hallmarks of a bull.

spx weekly TI

Support on the weekly chart is now at the 20w SMA: SPX2303, which is around where we expect the current correction to end over the next few weeks. Our exact price targets for this low, major 3, 4 and 5 -and alternate counts- are available to our premium members.

One thought on “S&P500 weekly chart remains weak: correction ongoing.

  1. Pingback: S&P500 remains on track for 2300-2280. | INTELLIGENT INVESTING

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