Account

New to ADSS? Open an
account now to get started.

OR

Already have an account?

Add funds to your ADSS account

Account

New to ADSS? Open an
account now to get started.

Add funds to your ADSS account

Trends & Analysis
News

US dollar surges after Fed cuts rate by 50 bps

News

Will small caps shine after the Fed cuts rates?

News

Gold price hinges on the Fed meeting decision

News

Crude oil surges ahead of US Fed announcement

News

EUR/USD surges following economic data

News

Could we see a huge USD move this week?

Trends & Analysis
News

US dollar surges after Fed cuts rate by 50 bps

News

Will small caps shine after the Fed cuts rates?

News

Gold price hinges on the Fed meeting decision

News

Crude oil surges ahead of US Fed announcement

News

EUR/USD surges following economic data

News

Could we see a huge USD move this week?

Asset Watch

Will the S&P 500 surpass the 200-day MA?

Tuesday, November 15, 2022

After a lower-than-expected Consumer Price Index (CPI) print helped propel the S&P 500 5.54% higher on Nov. 10, the momentum continued on Nov. 11. Morgan Stanley’s Chief U.S. Equity Strategist – who is tactically bullish but remains a long-term bear – expects more upside. He said on Nov. 11:
“We do think this ultimately is a bear market rally.” However, a breakout above the 200-day moving average could “get the animal spirits going” and push the S&P 500 toward 4,200 or 4,300.
“There’s probably further to go, probably through Thanksgiving, [or] maybe even into early December,” he said. “As rates come down … the NASDAQ, which has been the laggard in this rally so far, can now catch up.”
As a result, will the S&P 500 end its ~seven-month drought, or is another August reversal on the horizon?
S&P 500 Stock Chart Trading View

To explain, the S&P 500 hasn’t closed above its 200-day MA since April. After attempting to achieve the milestone in August, the index quickly reversed and made new 2022 lows. So, with the 200-day MA at 4,081.05, it’s only 2.2% above the Nov. 11 close.

 

However, with the Q3 earnings season nearly over and inflation showing signs of deceleration, the bearish clouds have somewhat dissipated. Additionally, with bullish seasonality present until year-end, the backdrop is relatively constructive.

 

Therefore, should you continue to ride the wave, or is it wise to take profits and wait for a confirmed breakout above the 200-day MA before buying back in?


Site by Pink Green
© ADSS 2024


Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.

ADS Securities LLC (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates as a trading broker for Over the Counter (“OTC”) Derivatives contracts and foreign exchange spot markets. ADSS is a limited liability company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.

The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.

ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.