S&P in Period of High Volatility

S&P entered period of higher volatility. The index will have a downward bias going into the end of the week, pressured by negative momentum but we expect support at the February lows remain largely intact. There is a high probability that market 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

S&P Vulnerable to Lower Prices

momentum deteriorated as S&P struggled to get pass the trend channel moving average. Wednesday’s weakness had improved the posture of our short-term indicators, which remain supportive of further pullback. The longer the index stays below 2747, the more vulnerable it is to lower prices

S&P in Reflexive Bounce

S&P tested and held support as the upper boundary of the green band. Our near-term work on price structure and momentum suggested that the index is in a reflexive bounce. Nevertheless, we will be looking for the index to close above the trend channel moving average before getting aggressively long again

S&P Shifted to Range Bound Trading Environment

S&P broke key support Tuesday, signify a bearish trend reversal. Nevertheless, support is strong near the 2690 zone so it should not be surprised to see at least an attempt to rally in the coming days. Our near-term view is that there is a higher than average odd that the upper and lower limit of a short-term trading range has been set between the 2690 and 2810 levels on the S&P. So until proven otherwise, the index should bounce back and forth within that 120 points range.

S&P’s 2748 Might Not Hold for Long

near-term picture remains the same, S&P consolidates near the trend channel moving average as we’re heading into the two-day Federal Open Market Committee monetary policy meeting next week. Several short-term indicators are pointing toward further weakness, suggesting that S&P’s 2748 might not hold for long. A failure to hold above that level indicates a change in sentiment and a much deeper pullback should be expected

S&P in Low-level Consolidation Period

trading actions over the past few days represented an orderly low-level consolidation period in the aftermath of Tuesday’s massive selloff. We’d turn particular bearish if the index closes twice below 2748. With that said, if that support gives way, the next leg is likely lower, and we’re looking at 2690


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