Baxia Markets
January 29, 2024

SP500 Analysis: Navigating Bullish Momentum After Robust US GDP

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Following a robust US GDP, the SP500 finds itself at a pivotal juncture, with bulls eyeing further gains. However, the technical landscape suggests a cautious approach as potential signs of a double top pattern emerge.

SP500 Analysis: Navigating Bullish Momentum After Robust US GDP

  1. Bullish Momentum Post-US GDP: The SP500 bulls are set to extend their rally following a strong US GDP, highlighting the resilience of the market amid positive economic indicators.

  2. Expanding EMAs Signal Strength: Both the EMA 50 and 200 continue to expand, underlining the robust nature of the current bullish trend. The widening gap between these EMAs emphasizes the sustained momentum.

  3. Caution with Double Top Formation: A potential double top pattern is taking shape at the peak of the bullish surge. Confirmation awaits a break below the key support level at $4865 (highlighted in the brown rectangle), signaling a cautious outlook.

  4. Bollinger Bands Reflect Strong Bullish Momentum: The Bollinger Bands showcase the enduring strength of the bullish momentum, with prices yet to breach the lower band. This suggests that despite potential headwinds, the prevailing trend remains intact.

  5. MACD and RSI Indicators: The MACD indicator has broken its descending trendline, maintaining a position above the 0 level. However, the effort appears somewhat tepid. Meanwhile, the RSI, reflecting the strength of the bulls, sustains a level above the crucial 40%.

While the overall trend for the SP500 remains bullish, traders should exercise caution. The emergence of a double top pattern and subtle signals from the MACD indicate a need for vigilance. A confirmation of a bearish reversal may hinge on multiple indicators aligning, emphasizing the importance of a comprehensive approach in navigating the current market conditions.


Key Economic Releases to Watch Today

NZD, Trade Balance (MoM) (Dec)

Actual -323M, Forecast -975M vs Previous -1,250M



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