Tag: NASDAQ Composite

Look to Reduce Exposure into Overbought Strength

the fact that market is overbought as S&P poked its head into the level that had been successful in repelling price action in the past does not favor a sustain breakout. The overall technical backdrop however, remains bullish so we’d look to reduce exposure into overbought strength, which might take the S&P closer to 3030 before a significant pullback unfolds

Buying Pressure Deteriorated As S&P Tested Key Level

the big picture remains the same. There is an orderly pullback consolidation, which represents digestion period. However, the fact that buying pressure deteriorated as the S&P tested key price level suggested that most of the potential buyers at this level had already placed their bets. The next batch of buyers typically sits at a much lower level. With this in mind we’d look to reduce exposure into intraday bounces

S&P Struggled To Get Pass 3000

S&P struggled to get pass the important sentiment 3000 mark 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, traders should look to buy into market dips rather than chasing breakouts

S&P Shifted to Consolidation Mode

S&P shifted to consolidation mode after the September rally ran out of steam near the important sentiment 3000 mark. While momentum remains favorable over the short to intermediate term, the bulls need to hurdle and sustain above 3000. 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

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