Last Signal
Buy Signal (Long) 16.02.24:
Entry 5033, Stop Loss 4917
The S&P 500 has moved sideways around the 5000 point mark this week without any major gains or losses. There were slight losses at the beginning of the week, due to higher than expected inflation figures from the USA. However, the index was able to correct these losses over the rest of the week. The sideways movement has somewhat worked off the heavily overbought condition, which means that the S&P 500 now has a little more room for improvement. On Friday our indicators hit and a new trading signal was triggered (here).
As already described in the last few weeks, the 5000 points is a very important psychological mark. This goal has been achieved, now the question is what happens next. The S&P 500 is more than two standard deviations from its 50-week average. In other words, to an extreme that occurs less than 5% of the time. A major correction is inevitably to be expected from such extremely overbought levels.
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