Market participants at a standoff awaiting directional resolution of a defined explosive technical pattern. Resolution will determine the direction of the next durable trend.
The broad equity markets (as represented by SPX) are at an important inflection point with an explosive contracted volatility pattern awaiting resolution. “Diamond” patterns portend extended price moves either higher or lower. Normally resolution is in the direction of the prevailing trend but with most indices at multiyear or historic highs and overdue for a […]
The relentless grind higher of the U.S. equity indices can’t be denied. However regardless of one’s optimism, indices are nearing extreme overbought levels with confluent confirming indicators. For example, SPX RSI2 ended Friday’s trade greater than 97 and RSI5 greater than 80. Both are at extreme short term overbought levels. What’s more, the current angle […]
Prices extend higher after capture of “Bullish Trend Reversal Threshold”. Lack of validateing volume could be problematic.
SPX extends higher to reinforce a short term “Bullish Trend Reversal” but declining volume fails to validated new highs. Although the end of the month normally favors Buyers, approaching overbought conditions and lack of confirming volume increases (Bearish) reversal risk. A healthy pause to digest gains is favored with any throwbacks to test lower support […]
SPX attempts to extend higher to then stall and end Thursday’s session with marginal losses. This shouldn’t surprise as the outcome to Friday’s Non-Farm Payroll report awaits. The reaction to this report will determine if a potentially negated daily descending trendline is validated or only adjusted. It should go without saying, prudent investors/traders should stand […]
April 30, 2014: SPX tentatively captures overhead resistance, but follow thru higher is required to confirm.
SPX captures a daily descending trendline but the jury is remains out awaiting the outcome of Friday’s Non-Farm Payroll report. Caution is advised or Thursday trading as prices more will be more random (up/down) and swift as participants jungle positions ahead of Friday’s volatility events.
Both Buyers and Sellers jockey for position to start the week ahead of multiple critical economic volatility events (e.g. tomorrow’s FED meeting announcement and Friday’s Non-Farm Payroll report). Monday’s performance did not provide and addition clues and yesterday’s commentary remains relevant.
SPX extends gains ahead of last week’s Good Friday market holiday. However next week, equities will not have normally bullish seasonality and option expiration related influences to support prices. Headline risk and general market dynamics will likely weigh on prices with a test of new moving average support levels (former resistance) anticipated. The outcome of […]