S&P is trapped within narrow trading range as traders await new market moving catalysts. Technical pressures are building up as the market dances its way into an increasingly tight trading range. S&P’s 2750 marks the inflection point. A failure to hold above key level indicates a change in sentiment and a much deeper pullback should be expected.
Tag: SPDR S&P Retail ETF
the bullish reversal doji candlestick pattern in the S& together with the sold technical backdrop suggested strongly that the market is at or very close to a near-term low. So it wouldn’t surprise us to see at least an attempt to rally over the next couple of days
while it is possible that S&P could continue to drift higher as trading sentiment remains strong, return of overbought conditions on an intraday basis might put a cap on the upside. As for strategy, we’d look to reduce upside exposure into short-term rallies as we believe market vulnerable to some downside retracement over the medium-term
trading behavior in the S&P remains constrained by a short-term sideways pattern and shown little evidence of a sustainable change in trend. Although, we would reclassify it as something stronger if we see a more constructive pattern on the S&P chart.