cemagraphics
Last week's gain of 38 points for the S&P500 (NYSEARCA:SPY) seems about right. Signs of inflationary pressures in the CPI report were cancelled out by PPI at 0% and solid retail sales, and the bullish trend continued slowly higher.
S&P 500: If You Missed It, Be Patient (Technical Analysis)
Summary
- The S&P 500 remains in a bullish trend, with shallow corrections and new highs likely as the 'melt-up' phase continues.
- Many want a larger correction to buy, but this article suggests caution. Frustrated bulls who missed the last part of the rally often buy too early.
- When the melt-up phase completes, a larger correction of 300-400 points should get underway.
Andrew McElroy is Chief Analyst at Matrixtrade, author of the ebook 'Fractal Market Mastery' and producer of the 'Daily Edge.' The 'Daily Edge' is emailed before each US session and outlines actionable ideas, directional bias, and important levels in the S&P500. It also looks at 'What's Hot,' on any particular day, whether it is commodities, stocks, crypto, or forex. Andrew has developed a top-down proprietary system that starts with his weekend Seeking Alpha article focusing on the higher timeframes. Fractals, Elliott Wave, and Demark exhaustion signals are all incorporated, as are macro drivers and analysis of the market narrative. It is much more than just a few lines on a chart - it is a system developed over 15 years and proven to deliver a consistent edge. An independent trader since 2009, Andrew manages a family portfolio of stocks and ETFs with his wife and fellow Seeking Alpha contributor Macrogirl.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of VOO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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