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.
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 […]