Asset Watch
Tuesday, November 21, 2023
While the risk-reward isn’t as attractive as it was, there are ways to stay invested and manage volatility.
For example, the S&P 500 continues to trade above its rising support line, and if that remains the case, then the outlook is constructive. That said, the index faces resistance from its August 2021, March 2022, July 2023, and August 2023 closing/intraweek highs (the arrows facing down), which could narrow the price action in the days ahead.
Therefore, if the S&P 500 can break above 4,550, the bulls will remain in control. If not, and a breakdown occurs below the rising support line, then the bears would gain the upper hand. Either way, you should monitor these levels carefully.
So, can the bullish stampede continue, or is another correction approaching?