S&P shifted to holding pattern as traders wonder whether more gain is warranted given the massive advance over the past week. The fact that the S&P managed to hold on to most of the June’s massive gains despite prolonged overbought conditions suggested that the index could take another leg higher as soon as it works off the excessive optimism
Tag: SPDR S&P Retail ETF
there is currently a test of resistance at the trend channel moving average. Momentum is not favorable over the near to intermediate term, suggesting that this is not a time to be long. What the bulls want to see is S&P stabilizes and climbs above 2862. 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 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.
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