Market Outlook of S&P500 - 12May25
S&P 500 has risen 8.55% from a year ago.
From the Daily interval technical indicators, they point to a “Strong Buy” rating for the S&P 500. 18 indicators have a ”Buy” rating and 3 with a “Sell” rating.
Technical analysis of S&P 500:
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Exponential Moving Average (EMA) lines are on an upward trend (short to medium term).
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The MACD indicator shows an uptrend and may peak in the coming days.
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A death cross was formed following the intersection of the MA 50 line (from the top) with the MA 200 line. This implies a pending downtrend.
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With the candles above the MA50 line and below the MA200 line, this implies a bullish trend in the mid-term and bearish in the long term.
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The Chaikin Money Flow (CMF) indicator shows more buying than selling volume. There is a weakening buying momentum.
Observations about the candlestick patterns (inputs from Grok):
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Bearish Signals Dominated Early 2025: Patterns like the Evening Doji Star, Doji Star Bearish, Three Black Crows, and Three Outside Down (Feb-Mar 2025) accurately predicted the sharp correction from the S&P 500’s peak near 6,000 to its low around 5,345.01. These patterns reflect strong selling pressure and a reversal of the prior uptrend.
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Recent Bullish Signal: The Bullish Doji Star (Apr 25, 2025) aligns with the recent recovery in the S&P 500, as the price has risen to 5,659.91. This suggests that the market may be attempting to reverse the downtrend, though it’s still below the longer-term resistance levels (e.g., 200-period MA at 5,748.28 from prior analyses).
With the factors above, the S&P 500 should be on an uptrend in the coming days. The S&P 500 may hit a peak in the coming days.
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