What Kind Of Price Action Is This On S&P 500?

The situation surrounding the S&P 500 stock (SP500) is interesting. Some experts believe the price would collapse further, but the current price action shows that the price would continue to rally till, at least, the first quarter of the year 2016.

The price performed a major bearish movement in August 2015, and therefore, the market became highly volatile with no clear directional movement in September. However, the price has now started a nice bullish effort, which might go on till the resistance levels at 2100, 2200 and 2300 are eventually attained.

What kind of price action is this on S&P 500? The current price action is in favor of the bulls. The price has gone far above the EMA 21 and the Williams’ % Range period 20 is in the overbought territory.

The fact that the Williams’ % Range is in the overbought territory does not mean that the market is now due for a strong pullback (that thought is currently illogical). It means the bullish bias is strong, and while there could be occasional pauses and shallow corrections in the months to come, the price would generally go further north.

This forecast is ended by the quote below:

“Learn to recognize that price is a fickle thing that can change its mind faster than Hollywood actors change relationships. The price moves like the people who move it.” – Gordon Philips

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