SP500 follow up analysis

12 Jan

The current technical analysis of the SP500 reveals an uncertain landscape, primarily due to a significant gap that needs attention. Two plausible scenarios are in play:

Immediate Downside to Close the Gap: This could translate into a short-term downward move.

Potential Upside Followed by Downside Correction: Alternatively, there might be a brief upward surge to fill the gap, likely followed by a corrective move downwards.

Given the unclear direction, it might be wise to avoid unnecessary risks by refraining from opening positions at this moment. The market's ambiguity suggests a need for patience until a clearer trend emerges.