Chart of the day

Where do we stand fundamentally?

The S&P 500 (SPX) has been performing strongly in 2024, showing a year-to-date return of 26.7% as of November 22. This includes a 25.15% price return and 1.56% from dividends. The index closed at 5,969.34 on November 22, reflecting a 0.35% daily increase. Key drivers of recent performance include robust earnings reports in sectors like Communication Services and Health Care, although the Energy sector has struggled. Earnings for Q3 grew 5.1% year-over-year, marking the fifth consecutive quarter of growth.

SPX is retesting the possible short-term and medium-term top of 6000. We need to see a breakout above this level for an extended fifth wave. I expect a deeper pullback here in the fourth wave of the five long-term waves for a retest of the 5200 in the medium-term.

We are in the development of the fourth wave medium-term before a rally higher in the fifth long-term wave. Before an extension higher we could see a pullback from here in the medium-term. Invalidation of a swing lower will happen upon a confirmed break above 6000.

_{Try a short trade entry with a stop loss above 6100 to target 5200 and lower or deploy a short trade strategy upon bounces from here with a stop loss always above 6100. You can trade it with put options as well.}

30% discount applied at the checkout till 26.11.2024