Some negative signs are showing up in the technical charts for S&P500 index.
Firstly, the MACD indicator is about to make a bearish crossover. The –DI is above the +DI and RSI is seen to be turning down from overbought levels. All these signs point to a weaker market in the short term.
However having said that, the uptrend is still intact as the trend line connecting the lows is still not violated.
A test of the trend line is possible this week. A closed below the trend line is negative for the bulls whereas a successful test of the trend line followed by a rebound is a sign of trend continuation.
Let’s see how the market behave this week Happy trading!
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After kicking off the second half of the year with a strong performance, U.S. investors are looking to capitalize on the momentum Tuesday. U.S. stock futures were up, with the Dow, Nasdaq and S&P 500 all moving in a positive direction. The major U.S. automakers are set to release monthly sales figures,while the Census Bureau will release data on factory orders at 10 a.m. ET. The source is CNN and ioption broker review ioptionsreview.com and that is the current situation of the stock market.
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