US Stock Markets have so far witnessed their longest surviving bull run. This bull run has gone beyond 10 years and still remains intact. The examination of long term Weekly Charts of S&P500 makes this reading quite evident and clear.
Having said this, it is notable that US Stock Markets have become utmost volatile in recent times. Monday’s decline of over 54 Points in S&P500 Index has resulted into formation of a probable lower top for the Markets. This has happened despite the 10-YR long upward rising channel remaining intact.
As of Week ending previous Friday, the S&P500 Index had moved past its 50-Week Moving Average which is presently at 2756.43. However, the next session on Monday, November 12th saw the S&P500 Index losing 54.79 Points and in the process, it has slipped below the 50-Week Moving Average which stand at 2756.43.
Also, Monday’s session not only saw this technically important development of S&P500 Index slipping below the 50-Week Moving Average, it has also seen formation of a lower top on the Weekly Charts. Even though the broad 10-YR long upward rising channel remains intact, this development may make life little jittery for S&P500 Index in the immediate short term.The above references the authors opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.
Milan Vaishnav, CMT, MSTA is a qualified Independent Technical Research Analyst at his Research Firm, Gemstone Equity Research & Advisory Services in Vadodara, India. As a Consulting Technical Research Analyst and with his experience in the Indian Capital Markets of over 15 years, he has been delivering premium India-focused Independent Technical Research to the Clients. He presently contributes on a daily basis to ET Markets and The Economic Times of India. He also authors one of the India’s most accurate “Daily / Weekly Market Outlook” — A Daily / Weekly Newsletter, currently in its 15th year of publication