What's the outlook of S&P500 using 20+ technical indicators and candlestick patterns?

Market Outlook of S&P500 - 02Jun25

Technical observations:

• MACD - a top crossover is completed, and this suggests a downtrend is coming.

• Exponential Moving Averages (EMA) lines are showing an uptrend. However, the 3 lines are converging, and a trend reversal is coming.

• Both the 50 MA line and the 200 MA line are showing an uptrend.

• Chaikin Money Flow (CMF) shows more buying than selling momentum.

The daily interval is showing a “Strong Buy" for the S&P 500 index.

From the 21 indicators, 20 show a “Buy” rating and 1 shows a “Sell” rating.

Short-Term Trend: Bullish

• The Morning Doji Star and Morning Star (both emerging as of May 26) are strong bullish reversal patterns, indicating that the recent pullback was a correction within a broader uptrend. The price rise confirms the resumption of bullish momentum.

• The Bullish Doji Star (daily, May 22) further supports a short-term bounce, aligning with the price increase after the pullback.

Long-Term Trend: Bullish

• The S&P 500’s recovery, combined with its sustained position above the 200-period MA suggests the longer-term trend is bullish, as noted in prior analyses.

• The bearish patterns from early 2025 (e.g., Three Black Crows, Three Outside Down) accurately predicted the correction, but their influence has diminished as bullish patterns have dominated since April 2025.

• The current Morning Doji Star and Morning Star patterns support the continuation of the longer-term uptrend.

Key Levels to Watch

• Support: 5,802.82 (recent low), 5,779.58 (20 EMA from May 23 analysis), 5,773.10 (200 MA).

• Resistance: 5,958.38 (recent high), 6,000 (prior peak).

(The above is taken from Grok.)

Given the above considerations, I expect the S&P 500 to decline in the coming days.

@TigerStars

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