EarningsBeats.com Digest for March 28, 2022
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Join Us This Wednesday...
Resumption of Secular Bull Market
Wednesday, March 30th at 4:30pm ET
About this event: Join Tom Bowley, Chief Market Strategist as he discusses cyclical bear markets and subsequent rallies, typical leadership, his favorite sectors and stocks, as well as the path forward. You don't want to miss this event!
This is a members-only event that is open to EarningsBeats members, including trial members. You can sign up for a 30-day FREE trial by clicking the link below which will guarantee you a seat to the webinar, as well as all of the features of an EarningsBeats membership. Don't think twice!
Can The S&P 500 Clear Critical 4600 Resistance?
I discuss our sustainability ratios a lot and they do offer us many clues as to market direction. But there is NOTHING more important that simple price support and resistance. That is ALWAYS the primary consideration when I apply technical analysis. Everything else is secondary. So my big question is....can the S&P 500 close above 4600, because it was unable to do so back in early February, despite two opportunities to do so.
Here's the chart and what we might expect if the $SPX fails:
If the S&P 500 closes above 4600, I believe there's a MUCH greater chance that the February low was our bottom. If, however, we fail to negotiate this resistance, then a lot of possibilities to the downside still remain. The first key support level will be the 20-week EMA and 50-week SMA, which are at 4469.32 and 4431.99, respectively. If that support fails, please be aware that the weekly PPO is negative and the weekly RSI remains below
60. This combination is indicative of a downtrend, so if price action cooperates and fails to break out, then impulsive selling could accelerate once again.
On Wednesday, I'll be hosting a key webinar to discuss the resumption of the secular bull market and what that is going to look like. It'll be very important that everyone is ready for the bullishness ahead. We are not in a secular bear market, in my opinion, meaning that any weakness is very likely to be short-term - even if we break down to fresh new 2022 price lows. I hope you can join me!
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Tom Bowley
Chief Market Strategist
EarningsBeats.com
Better Timing. Better Trades.
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