The post Have we reached the top? appeared on BitcoinEthereumNews.com.

Friday’s trading session didn’t bring much change for the stock market, with the S&P 500 index closing 0.16% lower. It fluctuated following its Thursday retreat from a new record high of 5,505.53. Today, the index is likely to open virtually flat, further extending a short-term consolidation. In my forecast for June, I wrote “For the last three months, the S&P 500 index has been fluctuating along new record highs, above the 5,000 level which was broken in February. It looks like a consolidation within a long-term uptrend, but it may also be a topping pattern before some meaningful medium-term correction. What is it likely to do? As the saying goes, ‘the trend is your friend’, so the most likely scenario is more advances in the future. However, a negative signal would be a breakdown below the 5,000 level. That would raise the question of a deeper correction and downward reversal. I think that the likelihood of a bullish scenario is 60/40 – a downward reversal cannot be completely ruled out. The market will be waiting for more signals from the Fed about potential interest rate easing, plus, at the end of the month, the coming earnings season may dictate the market moves.” Investor sentiment remained rather unchanged, as indicated by the AAII Investor Sentiment Survey last Wednesday, which showed that 44.4% of individual investors are bullish, while 22.5% of them are bearish (down from last week’s reading of 25.7%). The AAII sentiment is a contrary indicator in the sense that highly bullish readings may suggest excessive complacency and a lack of fear in the market. Conversely, bearish readings are favorable for market upturns. The S&P 500 index broke its upward trend line on Friday, as we can see on the daily chart. S&P 500 extended its bull market last week…

---

Filed under: News - @ June 24, 2024 5:24 pm