Bullish or Bearish? Week of March 18, 2024 (Updated)
Welcome to my blog! I believe that most beginners should start by investing in index funds, which will act as their core account. I personally like selling covered call options on stocks that I own, providing income. Nevertheless, this blog was written for short-term stock and option traders who want a weekly report on the market using technical analysis.
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Short-term trend (DAILY CHART) – NEUTRAL: Last week, SPX fell from 5137 to 5117, a 20-point retreat. After making all-time highs early in the week, SPX sold off strongly on Thursday and Friday. The latest news from the financial media is that the recession talk is off the table for now. The Fed meets this Tuesday, which will determine market direction. Note: Futures are FLAT on Monday morning.
Long-term trend (WEEKLY CHART) – NEUTRAL: SPX stalled out on Thursday and Friday after reaching all-time highs. SPX appears to have stalled out but let's see what the Fed will do, if anything.
MACD (DAILY) = NEUTRAL: MACD is above the zero line but slightly below the 9-day signal line.
RSI: (S&P 500) = 57.04 (DAILY) SLIGHTLY OVERBOUGHT: RSI retreated strongly once again and is near neutral. It went from extremely overbought to slightly overbought in less than two weeks. Who knows? One day it might actually be oversold.
Comment: All eyes are on the Fed this week as the market made all time highs before retreating. Not much happening in the market this week except for the Fed. Professional traders are always on guard when the market appears calm and nothing out of the ordinary has occurred. That's when something comes out of left field and catches everyone off guard. It could be that kind of week.