S&P Vulnerable to Downside Retracement as Bulls are Losing Control of the Market

there is currently a test of support at the trend channel moving average after the May rally ran out of steam near the important sentiment 2800 mark. Nevertheless, the fact that the S&P is basing sideways as market worked off short-term oversold conditions, suggested that the bulls are losing control and that market is vulnerable to further downside retracement

S&P must Hurdle and Sustain above 2800 to Strengthen the Bull case

there is currently a test of support at the lower boundary of the pink band. Momentum and Money Flow measure are not favorable over the near to intermediate term, suggesting that this is not a time to be long. What the bulls want to see is S&P stabilizes and climbs above 2800. The longer the index stays below that level, the more vulnerable it is to lower prices. This is the real danger in the current market

S&P Short-term Overbought but Downside Risk Could be Limited

S&P could continue to drift higher as trading sentiment remains strong. So, it seems to us that the overbought conditions can be sustained for a few days, potentially allowing for a test of 2500 before a significant pullback unfolds

S&P Broke Key Resistance But Upside Gains Could be Limited

the fact that the S&P is overbought as it approached key price level that had been successful in repelling price action in the past suggested that upside gains could be limited. As for strategy, traders should consider buying into market dips rather than chasing breakouts

Further Consolidation Could be Unfold between S&P's 2380 and 2400

it seems to us that the upper and lower limit of a short-term trading range has been set between 2380 and 2400 on the S&P. So until proven otherwise, the index should bounce back and forth within that 20 points range. At some points, of course, the market will either break above or below that range. That, if and when it happens, should be a fierce move.

S&P Could Regroup and Rebound From Near 2100

S&P broke key support Friday. When strong support is broken it means that long-term buying pressure has finally been exhausted. There is a high risk of downside follow-through this week. However, we expect support at the 2100 zone to remain largely intact. As for strategy, traders should consider buying once S&P falls to 2100 in anticipation of a substantial year-end rally.

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