Tag: iShares PHLX Semiconductor ETF

Looming S&P Breakout

the big picture remains the same. There is an orderly pullback consolidation, which represents digestion period. There is a high probability that the S&P will break out from current trading range as soon as the market shakes off weak hands bulls

S&P in Digestion Period Prior To New Upswing

the big picture remains the same. There is an orderly pullback consolidation, which represents digestion period. The fact that the index managed to hold on to most of recent gain in the face of such extreme overbought condition, indicating an internal strength. This increases the probability that the S&P will break out from current trading range as soon as the market shakes off the excessive bullishness

Expect Some Profit Taking Activities

while the near-term technical outlook remains bullish, given the looming resistance near S&P’s 2615-2630, there is no big commitment to accumulate stocks aggressively at this point. What this means is that as the S&P inches into the area of key overhead resistance, aggressive sellers will most likely dips in their toes to see how the market reacts. So, we’d be cautious against taking large position at this stage

Market Downswing may be Mature and Stocks are at Risk to Significant Upside

positive divergence starts showing up in the Money Flow measure as the S&P tested key supports. Typically, this is a sign that the downswing may be mature and stocks are, therefore, at risk to a significant upside. Near-term, there is a high probability of rapid rallies and retreats between 2600 and 2815. Short-term traders can play the range but the market is volatile and tight stops are advisable.

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