11 months ago • 1 min
We can sit here all day and talk about interest rates and the economy, but just going on simple technicals, here’s what you need to know about the state of US stocks right now.
This chart shows the S&P 500, with each of the red and green candles representing one week’s worth of price movement. It’s a smart way to look at the index: by cutting out the short-term noise – i.e. how it moves day by day – you can get a clearer picture of the bigger trend.
For the first time since late 2021 (you know, when stocks seemed to only go up), the S&P 500 has made a higher low (blue line) on a weekly time frame. In October, the weekly low (where it closed the week of trading) was around 3,584 points. But in December, it was higher, around 3,836.
So far, that’s only half the story: an uptrend is made up of higher lows and higher highs, after all. And we aren’t seeing that yet. Notice how the index is wedging itself between that blue line and the yellow dotted line above it, which kept it underwater all of last year. So it looks to be gearing up for a big move, in one direction or the other. But if it can finish one of these weeks above that line (say, 4,000 points), it might finally be able to breathe in some fresh air again.
Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.
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