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S&P in Range-bound Trading Environment
there is a high probability that S&P is in for a ‘range-bound’ trading environment. This is a rally and retreat environment. It is not a trending environment. Short-term traders can anticipate continued volatility with rapid up and down moves in the markets
Market Internal Deteriorated as S&P’s Testing Key Support
market internals deteriorated as S&P’s testing key support. S&P will have a downward bias this week, pressured by short-term negative momentum but we expect support to remain largely intact
S&P Remains Vulnerable to Some Downside Retracement
market is in holding pattern as traders are watching to see whether or not the S&P can hold above the lower boundary of the pink band. Money Flow measure had been deteriorated, suggesting that the support might not hold for long. A failure to hold above key price level means that long-term buying pressure has finally been exhausted. On balance, we remain near term negative for S&P as we believe market vulnerable to some downside retracement over the short-to-intermediate term
S&P Broke Short-term Upward Trend
S&P broke key support Monday, signify a bearish trend reversal with downside target near 2786. Nevertheless, it will be important to monitor the retreat and rebound behaviors over the next few days to determine whether breakouts are decisive
Momentums Deteriorated as S&P Struggled to Get Pass January Highs
S&P’s quick run is showing some signs of exhaustion. Market internals deteriorated as the index struggled to get pass the January highs. The index could signal a downward trajectory, depending on how it closes over the next few days. Initial support is defined by the lower boundary of the pink band, around 2825. If it closes below that level, the next leg is likely lower, and we’re looking at 2790-2800
our work on price pattern and momentum suggested that S&P could be in an early stage of a distribution phase. On balance, we’re cautiously optimistic on stocks over the short-term and look to trim positions into overbought strength
Overbought Conditions Returned on Daily Basis But Momentum Remains Supportive
overbought conditions have returned on a daily basis but momentum remains supportive so downside risk could be limited. It is possible that S&P could continue to drift higher as trading sentiment remains strong. As for strategy, buying into short-term dips remains the most profitable strategy
although overbought condition is keeping buyers at bay, S&P’s 2900 continues to act as price magnet. Short-term traders can anticipate increase short-term volatility with rapid up and down moves in the market
S&P secured key support last week. While there seems to be room to go higher, traders must be mindful that the return of overbought conditions on the daily chart. While overbought condition is normal during a pro-long uptrend, it’s suggested that upside momentum might not sustain without at least a short-term breather. With this in mind we’d consider increase exposure into short-term dips rather than chasing breakouts
S&P’s Upside to be limited by Overbought Condition
the fact that the S&P is short-term overbought as it moved up to test formidable resistance suggested that upside gains could be limited. As for strategy, we’d look to trim positions into short-term overbought strength
there is a high probability that S&P is in for a ‘range-bound’ trading environment. This is a rally and retreat environment. It is not a trending environment. Short-term traders can anticipate continued volatility with rapid up and down moves in the markets
market internals deteriorated as S&P’s testing key support. S&P will have a downward bias this week, pressured by short-term negative momentum but we expect support to remain largely intact
market is in holding pattern as traders are watching to see whether or not the S&P can hold above the lower boundary of the pink band. Money Flow measure had been deteriorated, suggesting that the support might not hold for long. A failure to hold above key price level means that long-term buying pressure has finally been exhausted. On balance, we remain near term negative for S&P as we believe market vulnerable to some downside retracement over the short-to-intermediate term
S&P broke key support Monday, signify a bearish trend reversal with downside target near 2786. Nevertheless, it will be important to monitor the retreat and rebound behaviors over the next few days to determine whether breakouts are decisive
S&P’s quick run is showing some signs of exhaustion. Market internals deteriorated as the index struggled to get pass the January highs. The index could signal a downward trajectory, depending on how it closes over the next few days. Initial support is defined by the lower boundary of the pink band, around 2825. If it closes below that level, the next leg is likely lower, and we’re looking at 2790-2800
To value CEM News members, Due to traveling schedule, the regular CEM News publications are not available for August 10, 2018. The regular update will resume on August 13, 2018. Sorry for any inconvenience this may have caused. We’ve appreciated your valuable readership! Should you have any questions, please email us at info[at]capitalessence.com. Thank you …[read more]
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