Technicals | Mar 28 2023
Michael Gable of Fairmont Equities notes that despite the events of last week, the charts suggest Wall Street is still bullish.
By Michael Gable
We noted last week that the fear in markets seems to be more driven by the media, and despite the Aussie market posting its seventh weekly loss in a row, it still seems as though that is the case.
When we look at the local index, it is finding the support that we anticipated last week. This week we have looked at the charts of the S&P500 Index and the Nasdaq, and although it is contrary to what most people are saying, our view is that these indices look bullish. That is, we are not seeing evidence (yet) that the market is going to roll over.
If anything, risk is to the upside and these are times to be watching very closely for stocks to buy. Once we see some upside breaks, which could be very soon, we should be able to spot some great opportunities. In the meantime, today's report has a chart on the S&P500 Index.
We last looked at the S&P 500 Index in February and noted that it seemed to be forming a bull flag.
Events since then led to further weakness in the market, but if we revisit the chart, we can see that we merely have a continuation of this same pattern.
The index hasn't capitulated, it is still forming higher lows (circled). We are also seeing it tighten up here under a clear resistance line.
Overall, the index looks like it wants to head higher. A close above 4000 would be the next buy trigger. A fall under 3800 would be a negative.
Content included in this article is not by association the view of FNArena (see our disclaimer).
Michael Gable is managing Director of Fairmont Equities (www.fairmontequities.com)
Fairmont Equities is a share advisory firm assisting Private Clients with the professional management of their share portfolio. We are based in the Sydney CBD but provide services to private clients across Australia. We believe that the concepts of fundamental analysis and technical analysis of stocks are not mutually exclusive. Regardless of whether you are a trader or long term investor, combining both methods is crucial to success. As a result, the unique analysis of Fairmont Equities is featured regularly in the media such as Sky News Business, CNBC, The Australian Financial Review, and the ASX newsletter. Contact us for a free trial of our research and information on our portfolio management services.
Michael is RG146 Accredited and holds the following formal qualifications:
• Bachelor of Engineering, Hons. (University of Sydney)
• Bachelor of Commerce (University of Sydney)
• Diploma of Mortgage Lending (Finsia)
• Diploma of Financial Services [Financial Planning] (Finsia)
• Completion of ASX Accredited Derivatives Adviser Levels 1 & 2
.jpg)
Disclaimer
Fairmont Equities Australia (ACN 615 592 802) is a holder of an Australian Financial Services License (No. 494022). The information contained in this report is general information only and is copy write to Fairmont Equities. Fairmont Equities reserves all intellectual property rights. This report should not be interpreted as one that provides personal financial or investment advice. Any examples presented are for illustration purposes only. Past performance is not a reliable indicator of future performance. No person, persons or organisation should invest monies or take action on the reliance of the material contained in this report, but instead should satisfy themselves independently (whether by expert advice or others) of the appropriateness of any such action. Fairmont Equities, it directors and/or officers accept no responsibility for the accuracy, completeness or timeliness of the information contained in the report.
Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" – Warning this story contains unashamedly positive feedback on the service provided.
FNArena is proud about its track record and past achievements: Ten Years On
