The post Stocks extend gains, but a correction may be looming appeared on BitcoinEthereumNews.com.

The S&P 500 index closed 0.42% higher, reaching a new local high of 5,632.68, edging closer to the July 16 record high of 5,669.67. This rally has retraced nearly all the declines that led to the panic selling and the August 5 local low of 5,119.26. The market has slightly extended its advance following a much larger-than-expected revision of annual jobs numbers yesterday. This morning, the S&P 500 is likely to open 0.2% higher, potentially leading to a consolidation phase. Yesterday, I wrote “Recently, the market has continued to climb following the brief Yen crisis at the start of August, surprising many traders. The question is whether the market will continue to new highs or reverse course and retrace the recent rally. I think there is a chance the market will reverse its course and correct some of the advances, retracing a large part of the rally.” Although there have been no confirmed negative signals, I decided to open a speculative short position on Tuesday. Last Thursday, I wrote “It still appears to be a correction following a decline that started in mid-July; however, the market may also advance towards a double-top or new highs.” This remains accurate as we could see a medium-term consolidation following early August volatility. Investor sentiment much improved yesterday, as indicated by the AAII Investor Sentiment Survey, which showed that 51.6% of individual investors are bullish, while only 23.7% of them are bearish – down from 28.9% last week. The S&P 500 index remained above the 5,600 level yesterday, as we can see on the daily chart. Nasdaq 100 getting closer to 20,000 The technology-focused Nasdaq 100 gained 0.52% yesterday after declining by 0.2% on Tuesday. However, it remains relatively weaker than the broader stock market following the early August sell-off. The index is being…

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Filed under: News - @ August 22, 2024 2:19 pm