Waiting for the S&P 500 to rise

01 June 2022 168
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The second half of May has come to an end. During these days the German stock index DAX rose by 2.6%, thus confirming its typical growth in the second half of the month.

 

June has begun, which means the entry into the arena of the US stock indices Dow Jones Industrial, S&P 500 and Nasdaq, the British FTSE 100 index and the Russian MICEX and RTS indices. They usually grow in the first 15 days of the month.

 

Today we opt for the S&P 500 index, more than 62% of the growth of which falls on the first half of the month, and the growth itself averages 0.45%.

 

Furthermore, June and July are months of seasonal manifestations of one of the components of the broad market index - the US real estate index (S&P 500 Real Estate), which can also spur the growth of the S&P 500 itself.

 

Plus, the waxing moon phase has come, which usually also facilitates the growth of the broad market index, but lesser than the wanning moon phase.

 

 

The technical picture is that the index is correcting after a significant decline of 15% in less than 2 months.

 

Today, the S&P 500 has consolidated above the 38.2% Fibonacci level with a likely increase to the 50% and 61.8% levels, which correspond to the 4220 and 4315 marks.

 

 

 

Suggested trading options:

 

1. Buy at the current price.

Target orders Take Profit 1 and Take Profit 2 should be placed at levels 4220 and 4315.

Protect the funds with a Stop Loss order below 4100.

An exit option may also be to close the position at the end of trading on June 15th.

 

2. Buy when the price rolls back to the Fibonacci level of 23.6%

Target orders Take Profit 1, Take Profit 2 and Take Profit 3 should be placed at levels 4120, 4220 and 4315.

Protect the funds with a Stop Loss order below 3990.

An exit option may also be to close the position at the end of trading on June 15th.

 

 

 

Risk statement!

Trading on financial markets involves a high level of risk and may lead to the loss of investment capital. The MarketCheese team is not responsible for the possible loss of your investment funds.

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