27 Dec 2021, 09:51
The S&P 500 did not break down as we expected last week. Instead, we were happily proven wrong as the index is now up to its all-time high. Will it break new highs this week? In the picture, we have already seen a formation of a bullish ascending triangle. As of now, things are looking pretty bullish for investors despite the threat of the looming interest rate hike.
However, to confirm if we are going to be bullish moving forward, we need the S&P 500 Index to break above its all-time high which currently acting as the brown resistance in the picture. And, if that is the case, we could see a Santa Claus Rally going into the New Year. Traditionally, if we were to see a Santa Rally, it could be a really bullish year in 2022. Therefore, observe if the next two weeks would be bullish or not. If it isn’t, then the bears may turn up to board next year instead.
I doubt we would see any new opportunities to enter new stock positions this week. However, I suspect if the index could break above the all-time high, we could be seeing some opportunities to enter. Therefore, do keep a watch out for new trading signals and be prepared for new entries.
At EmSociety, we want to wish you all a Happy and Prosperous 2022!
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