Give me your analysis of the S&P 500. Use a 5 year weekly chart with 50 and 200-period moving averages. Use a daily chart with 50 and 200-period moving averages and an indicator that we cover in...

1 answer below »



  1. Give me your analysis of the S&P 500. Use a 5 year weekly chart with 50 and 200-period moving averages. Use a daily chart with 50 and 200-period moving averages and an indicator that we cover in class. Give me the A/D Line on both.




  2. Print a one year daily bar chart of your stock with all relevant trend lines.




  3. Print two five-year weekly charts of your stock (one log scale and one arithmetic scale). Include on-balance volume on both charts. Draw all relevant trend lines.




  4. Print a one-year daily chart of your stock with a 9 and 14 period RSI at the bottom. Highlight all overbought and oversold levels. Be sure to adjust these for the trend.




  5. Print a one-year bar chart of your stock with a 20 and 50-day moving average. Show the buy and sell signals of a two moving average system.




  6. Print a one-year chart of your stock relative to the S&P 500. Is it leading or lagging?




  7. Write a thoughtful analysis of your stock and tell me if you would open a long or short position as of the due date.



Answered Same DayMay 04, 2021

Answer To: Give me your analysis of the S&P 500. Use a 5 year weekly chart with 50 and 200-period moving...

Ashok answered on May 08 2021
136 Votes
1. In July 2015, S&P 500 was trading at around 2100. It made a low of 1860 in Feb’16 and post that it has seen a steady rise to 2875 in Jan’18. Post that it was a correction for 3 months and it made a low of 2570 in Apr’18. Post Apr’18, it rose steadily to 2930 by Sep’18. A steep correct was observed in Oct-Dec’18 and it made a low of 2380 in Dec’18. Since then, a steep rise was observed and an all time high of 3380 was observed in Feb’20. Post Feb’18, the index saw a heavy sell off and made a low of 2287 in Mar’20 due to the global pandemic of Corona virus. As on date (7th May’20), it has recovered slightly and is trading at around 2840.
The weekly and daily charts of S&P 500 are shown below with 50, 200 DMA and A/D line.
S&P 500 5 year weekly chart with 50 and 200 period moving averages and A/D Line:

S&P 500 daily chart with 50 and 200 period moving averages, MACD indicator and A/D Line:
    
MACD
Moving Average Convergence Divergence (MACD) is calculated by subtracting 26 period exponential moving average (EMA) from 12 peiod exponential moving average (EMA). A 9 day EMA of MACD is drawn which acts as signal line. A buy signal is generated when MACD line crosses signal line from below. A sell signal is generated when MACD line crosses signal ine from above. The speed of crossover also indicates heavy buying/selling momentum.
A/D Line
The advance/decline line shows the difference between the number of stocks advancing or declining on a daily basis on a cumulative way. It indicates price trends in major indices. When indices rise, a rising A/D line indicates uptrend. When indices rise but A/D line declines, it shows that lesser number of stocks are participating in the rally. When indices fall, a falling...
SOLUTION.PDF

Answer To This Question Is Available To Download

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here