E Should You Bet On The S&P 500’s Bull-Run?

The S&P 500 index has experienced one of its biggest rallies since bottoming in March last year. The SPX has gained more than 80% over the last 13 months. This rally appears set to continue based on technical analysis of the trend. 

man in black suit jacket and black pants figurine

                                                                                                  Image Source: Unsplash

After pulling back slightly between August and October, the US500 index has gone on to gain nearly 28%, again re-affirming the bullish outlook of the market. 

Technical Overview

Technically, the S&P 500 index appears to be trading within an ascending channel formation in the daily chart. This indicates a significant bullish bias in the market sentiment. The trend appears to have a strong positive correlation with a Pearson’s R of about 0.966. 

This suggests that the current trend can be expected to continue for the foreseeable future with the price action primarily concentrated closer to the mean. The few occasions that the price deviates from the mean present an opportunity to buy with a target price around the mean section of the channel.

This form of trading can be very tricky at times which is why some investors opt to buy long-term. Looking at the chart, buying long-term makes a lot of sense now, but sophisticated investors can also take advantage of the short-term deviations that create opportunities. This can be done via CFD platforms like AxiTrader that allow traders to trade an asset multiple times a day without attracting high transaction fees. This full review on AxiTrader discusses this feature and more in detail. Therefore, trading the S&P 500 could be an ideal opportunity to profit in the short term while still keeping some positions long-term as the bull run continues.

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Disclosure: The material appearing on this article is based on data and information from sources I believe to be accurate and reliable. However, the material is not guaranteed as to accuracy nor does ...

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