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US stock markets before Christmas rally: Financial expert analyzes S&P 500 and possible price developments
According to a report from finanzmarktwelt.de, the US stock markets recorded a brilliant rally after a sudden setback on Wednesday, which is now taking a short break. There is speculation as to whether this recovery marks the start of a Christmas rally, which statistically should begin in the final days of the stock market year. However, it is questionable whether a large part of this rally has already been exhausted by the previous strong upward movement. The current situation on the stock markets remains overbought despite the recent setbacks. The S&P 500 formed a bearish engulfing candle on Wednesday, which could indicate possible further falling prices. However, should the index negate the potential reversal candle...
US stock markets before Christmas rally: Financial expert analyzes S&P 500 and possible price developments
According to a report from finanzmarktwelt.de, the US stock markets recorded a brilliant rally after a sudden setback on Wednesday, which is now taking a short break. There is speculation as to whether this recovery marks the start of a Christmas rally, which statistically should begin in the final days of the stock market year. However, it is questionable whether a large part of this rally has already been exhausted by the previous strong upward movement.
The current situation on the stock markets remains overbought despite the recent setbacks. The S&P 500 formed a bearish engulfing candle on Wednesday, which could indicate possible further falling prices. However, should the index negate the potential reversal candle and rise above the high, it could trigger the expected Christmas rally.
Despite the recent setback on Wednesday, the situation on the stock markets is still overbought. The RSI indicator continues to move above the 70 level, which indicates an overextended rally. From a chart perspective, the S&P 500 formed a bearish engulfing candle on Wednesday. However, a daily closing price below the low of the candle (4,700 or 4,750) would be a signal for further falling prices.
The thin trading volumes in the days between Christmas and New Year's Eve could have a disproportionate impact on prices on the stock markets. The coming days will therefore be crucial in observing whether a Christmas rally actually takes place.
As finanzmarktwelt.de reports, CFDs are complex instruments and come with a high risk of losing money quickly due to the leverage effect. 78% of retail investor accounts lose money when trading CFDs with this provider. Investment success and profits from the past do not guarantee success in the future. It remains to be seen how the situation will develop on the US stock markets in the coming days and weeks.
Read the source article at finanzmarktwelt.de