S&P 500 completes pullback rally, original downtrend will begin below 2600

Vinayak Gangule
/ Categories: Trending, Markets

S&P 500 gave a sharp pullback rally in early November from its previous support zone. The pullback rally halted near 61.8% Fibonacci retracement level of the recent downmove started from its all-time high to low of October 10, 2018. S&P 500 has once again reached near its make-or-break level.

The 14-period weekly RSI is quoting at 38.21 and daily RSI is quoting at 35.49, while MACD is also in the negative territory which indicates a downside momentum. S&P 500 is below its long term 200-day EMA. The prices continue to display weakness till below the important moving averages.

The opening downside gap created on November 20, 2018 and the 200-day EMA will act as a major resistance zone in the coming weeks. A close below the recent low of 2603 will open door for a fresh downtrend. It is possible that the lows of earlier this year may be breached and the correction may turn into a bear market.

Previous Article Index trend and stocks in action November 26, 2018
Next Article Five stocks with buying interest
Rate this article:
5.0

DALAL STREET INVESTMENT JOURNAL - DEMOCRATIZING WEALTH CREATION

Principal Officer: Mr. Shashikant Singh,
Email: principalofficer@dsij.in
Tel: (+91)-20-66663800

Compliance Officer: Mr. Rajesh Padode
Email: complianceofficer@dsij.in
Tel: (+91)-20-66663800

Grievance Officer: Mr. Rajesh Padode
Email: service@dsij.in
Tel: (+91)-20-66663800

Corresponding SEBI regional/local office address- SEBI Bhavan BKC, Plot No.C4-A, 'G' Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400051, Maharashtra.
Tel: +91-22-26449000 / 40459000 | Fax : +91-22-26449019-22 / 40459019-22 | E-mail : sebi@sebi.gov.in | Toll Free Investor Helpline: 1800 22 7575 | SEBI SCORES | SMARTODR