S&P500 - Longer Term Insights

Be Aware, Beware and Wary

"When there is no fear of risk, the risk of failure now has foundation ~ Trader Garrett

In April 2021's "S&P500 - Overdone, Overvalued, Overdue - Oh Really?" below all primary trends were positive and projections suggested more substantial gains from the 4000 area. By December 2021, a further 20% gain occurred.

Be Aware

Be aware that the S&P500 has arrived above another round number (5000). Typically a retracement of some degree might be indicated but is not guaranteed.

Beware

Beware of those forecasting a bear market for months when all S&P500 time frame trends continue in a positive posture with no signs of an imminent bear trend or crash. 

In fact today, Finviz shows 64% of stocks above their 200 day MA and 58.8% are above the 50 day MA.

Be Wary

Be wary, however, that the S&P 500 continues to be overvalued by any standard metric. 

Unless you have a highly inflationary economic environment, the over valuation trends are unhealthy, unsustainable and unlikely to last.

Be Forewarned

Benchmark Firepower has a strong record on long term forecasts. 

It suggests a major bear market in the S&P500 "may" develop by the end of May 2024. This is an initial speculative assessment only requiring further data.

Invest wisely.

2/10/24


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S&P500 Index

Overdone, Overvalued, Overdue - Oh Really?

Everyone knows the S&P500 and some other broad market indexes are way overdone, overvalued and overdue for a major correction. However, the trends do not agree.

For example, all primary trends are positive in the daily, weekly, monthly and beyond. 

Projections suggest substantial further gains.

Historical Record

See the longer term S&P500 TDI/GPS picture with the current dailyweekly and 20 year monthly charts here.

Benchmark Recommendations & Record has our documented calls on the S&P500 here.

Application Benefit

One of the simplest ways to track trends is by using our TDI and GPS, both of which have an impressive record.

To duplicate or replicate website charts and results, we strongly recommend using your creative imagination skills and Simple Trading Logic.

Alternatively, an entry level free tutorial using premiere indicators is here

4/2/21

12/31/21 Update - S&P500 gained a further 20%.

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Caveat

While past performance and probabilities are favorable, results are not guaranteed. Use these trade plans, stocks or comments at your own risk. All analytical content and commentary provided within or from this site is aimed purely to educate or inform readers on the potential technical and fundamental aspects and possible value of intelligent, mathematically based research tools and charts for due diligence purposes.

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