Sellers take a break as Buyers move in to rescue SPX at critical 50 day moving average support.
April 7, 2014: SPX succumbs to overwhelming selling after failure to retain layers of moving average support.
Sellers overwhelmed equity indices as SPX loses multiple levels of nearby support. A defined reversal pattern projects an imminent test of the widely watched 50 day moving average. This test will be confluent with Weekly Implied Volatility Band support and oversold conditions suggesting a reflex rebound should be anticipated. The quality of any oversold bounce […]
Friday’s “Sell the News” reaction to the Non-Payroll Report weighs heavy on SPX. Unless Buyers rescue prices at current levels, Sellers will return with enthusiasm and test the reoccurring 1850 support level and then the widely watched 50 day moving average at ~1838.
SPX breakout higher continues but momentum is waning as market participants prepare for the reaction to Friday’s Non-Farm Payroll report. Depending on the intensity of any potential negative reaction, the former upper boundary of a 3 week consolidation range is now the first level of support and then the growing base of support at SPX […]
SPX breakout attempt from a 3 week consolidation pattern is underway. Onus on Buyers to follow thru higher and survive a likely test following Friday’s upcoming Non-Farm Payroll report (know) volatility event. As “Triple Top” patterns are highly infrequent, advantage Buyers until proven otherwise. That said, buying retraces when testing support is always preferable to […]
End of Month Buyers step up to rescue prices. However, very light volume for the last day of the month and quarter suggest market participants remain cautious. Prudent investors/traders should wait for the resolution of a maturing consolidation range before committing new capital.
Sellers remain in control as SPX descends to another “lower low” following the defined March 21 Double Top pattern. Unless Buyers quickly defend prices at current levels, the maturing SPX consolidation range will resolve lower with the first target destination of ~1800.