Tag: SPX

S&P in Holding Pattern Prior to New Upthrust

the S&P stuck in a holding pattern as traders digested the early January massive run. The fact that the index has retained all of recent gains despite short-term overbought conditions suggested that the market could take another leg higher as soon as it works off the excessive optimism

Return of Overbought Conditions Might Put a Cap on Upside

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

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

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