Equities Q2 Technical Outlook: Record Breaking Stocks Show no Signs of Slowing Down

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After printing multiple all-time highs, US indices now trade at or around new highs with little sign of fatigue. Fibonacci projections provide an indication of where prices may be headed

We head into Q2 with very little that suggests the bull trend may reverse or even fatigue. The narrow ascending channel bears testament to the one-directional move, as price action heads up and to the right with few challenges. The S&P 500, like the other indices analysed in this forecast, achieved multiple all-time highs in Q1 and therefore has plenty of clean air ahead as it charts a new course.

It is difficult to imagine the index maintaining this pace into Q2 and perhaps the path of US stocks is more likely to decelerate to a more moderate upward trajectory.After developing a thorough understanding of the technical setups, why not download the complete Q2 forecast for US equities for the full picture?100 has also performed well in Q1, rising 8.88% at the time of writing .

Adopting the same 161.8% Fibonacci projection as that applied to the S&P 500, the upside marker appears more of a challenge – providing a positive reward/risk profile for Q2 if the bullish trend continues in the same way it ended Q1. The Dow witnessed a steeper ascent in the latter months of 2023 than what we saw in Q1, which suggests in Q2 we could possibly see a further flattening of the uptrend but an uptrend nonetheless.

 

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