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
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.
the long awaited downside correction unfolded Wednesday, leading to a test of support at S&P’s 2785, or the bottom of its short-term trading range. Market internals deteriorated but oversold conditions could help minimize downside follow-through and widespread breakdowns. Nevertheless, we may need to see evidence of exhaustive selling to suggest that near-term risks are ebbing
One of the more noteworthy developments in recent days has been the move in semiconductor space. The marvelous run of the semiconductor stocks that started in the second half of 2016 stalled in late November amid worries about the end of super cycle. After falling for most of the week, the iShares PHLX Semiconductor […]