The rallying S&P 500 may just be in a consolidating overall downward trend – Roth MKM
Roth MKM said Monday that despite the rise in the S&P 500 (SP500) over the past week, investors should still exercise caution when looking at overall market. Specifically, the firm argued that the benchmark index might be merely consolidating set up in a broader downward move.
“We still need to exercise caution at the index level due to the possibility that the recent move is nothing more than consolidation within a downtrend. Longer term we remain constructive but short term we have reined in our enthusiasm and recommend a neutral view of the overall market,” Chief market technician JC O’Hara of Roth MKM stated.
Furthermore, Roth MKM spotlighted the equal weighted S&P 500, which broke out to fresh highs from March. “If the index can reclaim the January 2022 highs this week, it will be a very telling sign that the overall market of stocks still has life and suggestive that new highs are in store.”
See a chart that Roth MKM provided:
For further monitoring of the benchmark S&P 500, here are some key funds tied to the major averages: (FXAIX), (VFIAX), (VFFSX), (SPY), (VOO), (IVV), (RSP), (SSO), (UPRO), (SH), (SDS) and (SPXU).