SPX - The market appears bullish
$S&P 500(.SPX)$ : Price action has reached and been rejected by the upper Bollinger Band, forming a daily doji candle. As illustrated by the blue arrows, a move towards the 20DMA is expected.
On the positive side for bulls, the stochastic oscillator is not overbought, and the 20DMA is nearby.
Do you anticipate an immediate move to the 20DMA, or further upside first?
The market appears bullish until proven otherwise, but the charts shows the best scenario is for a consolidation. Previous occurrences indicate the healthy pullback was just delayed.
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The 4-hour chart suggests caution. The red circles highlight previous instances of similar price action, while the black circles mark bearish stochastic crossovers. Currently, the oscillator is overbought.
Should bulls proceed with caution? I believe so.
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