Equity markets begin the week pressing upon upper level resistance. Our internal quantitative analysis indicates that the broad market (SPX complex) is entering overbought price zones as well. A pause to digest gains and test lower support would provide the best opportunity to capture the upper boundary of a defined “Raising Wedge” technical pattern on […]
Volatile start to 2015 portends stormy days ahead in financial markets. Violation of January’s lows will pressure the prevailing ascending trend.
SPX succumbs to extreme international uncertainty as Buyers rush to the sidelines and Sellers return to take charge. Prices are now at extreme short term oversold levels with the quality of an inevitable reflex rebound to determine the durability of a developing corrective phase.
Buyers enter on cue to rescue SPX at appropriate prices supports. If Sellers are unable to thwart follow thru buying, Buyers will retake control once again.
Sellers take charge as Buyers are unable to follow thru from Monday’s late session rebound. Unless Buyers quickly rescue prices, SPX is likely to test lower moving average support levels.