S&P 500: Maximum fear was not priced in. Mean reversion decision
A major stock market pullback is after the close of the "S&P 500" below the 50 day SMA and the "VIX" volatility 'fear' index closing above the 200 day SMA increasingly more likely than last week. If company earnings disappoints the entire "Trump rally" could turn from euphoria into panic. The result could be a very strong downtrend until Summer 2017.
Bulls could save the uptrend at the last minute and launch a new uptrend from the strong support around 2300 points (or less likely from above 2320 points).
But as long as the "S&P 500" stays below the 2345-2355 price region the trend strongly favors the growing number of bears. Due to the new data from earnings (e.g. "Netflix" on Monday) and new China GDP data (also to be released Monday), I publish this chart as neutral though, also because the market has already gotten 3% cheaper since the new all time highs made on March 1 and emotions now had some time to get back to neutral over the long Easter weekend, going into the new trading week.
P.S. My two recent bearish chart ideas in case the market resumes the growing downtrend:
Bulls could save the uptrend at the last minute and launch a new uptrend from the strong support around 2300 points (or less likely from above 2320 points).
But as long as the "S&P 500" stays below the 2345-2355 price region the trend strongly favors the growing number of bears. Due to the new data from earnings (e.g. "Netflix" on Monday) and new China GDP data (also to be released Monday), I publish this chart as neutral though, also because the market has already gotten 3% cheaper since the new all time highs made on March 1 and emotions now had some time to get back to neutral over the long Easter weekend, going into the new trading week.
P.S. My two recent bearish chart ideas in case the market resumes the growing downtrend:
