S&P 500 respects the 50 days Moving Avarage as it has been tested many times in the past Each time it touched 50 Moving Avarage for a typical pull back, it would bounce back again. The candle touched the 50 Moving Avarage recently but It bounceds back. Is it the confirmation that expected market correction is canceled, or it will drop again reaching the market correction territory ?? Any comment ??
I would say, who knows.
A market correction is defined as a 10% drop from highs and the last couple of weeks may be a signal of a busy inflated market. Fortunately, this blip was some way off a correction.
But there has to come a point where by the market becomes stagnant or drops, are we there yet? Probably not as there is still a reasonable amount of liquidity in the market.
I’m also still unsure of how much I trust technical analysis.
You should wait for the FED and FOMC Projections. The market almost always goes down between 15-20 of the month. That is usually when the FED meetings occur. So I would wait to see if we are do a correction or not.
Pretty sure the fed announcement is the 22nd, you’re right though, it’ll have a big impact.