Tag: featured

Not Time to Accumulate Stocks Aggressively

there is currently a test of support at last week’s breakout point. Momentum and Money Flow measure are not favorable over the near to intermediate term, suggesting that this is not a time to accumulate stocks aggressively. What the bulls want to see is S&P stabilizes and climbs above 2830. 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 Shifted to Consolidation Mode

recent trading actions leaving the S&P in what looks to us like an orderly high level consolidation of the early November recovery rally. The fact that S&P is holding firmly above 2800, a level it has not breached since market broke down in early October, was pretty encouraging. Over the next few days, it will be important to monitor the retreat and rebound behaviors to determine whether recent breakout is decisive. We’d turn particular bearish if S&P fails to hold above 2760

S&P Might Need a Short-term Breather

the fact that the S&P finally broke above the 2016 rising trend line, which it has been penetrated over the past few days, was pretty bullish. Nevertheless, the return of overbought conditions on intraday basis suggested that the market might need a short-term breather. Now S&P has to trade around Wednesday’s breakout point and test it. That’s what the rest of this week may be about

S&P Testing Support Turned Resistance

the late October’s recovery rally is testing ‘support turned resistance’ near S&P’s 2765. While the overall technical backdrop remains bullish with the short-term trend pointing upward, momentum has does not appear strong enough to generate widespread breakouts. The longer the index stays below that level, the more vulnerable it is to lower prices