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All Bets are off should S&P Falls below 2700

the near-term technical bias remains somewhat bearish as S&P’s testing key price levels. More backings and fillings would not be a surprise. S&P’s 2700 is the line in the sand. All bets are off should the bulls fail to secure this support

S&P in Process of Establishing Interim Low

based upon recent trading action, the S&P could be in a process of establishing an important interim low where the next upswing will be based and launched. However, a close above the trend channel moving average is required before there is any real prospect of a change in the short-term downward trend pressure. As for strategy, traders should consider taking down exposure into additional strength

Traders Should Consider Taking Down Exposure into Additional Strength

so far the upswing that started off the October low of 2710 on the S&P has proved nothing as far as its staying power or as a possible major upswing. Resistance is strong between the 2823-2873 zone and upside momentum does not appear strong enough to generate a decisive breakout. With this in in mind, we would consider taking down exposure into additional strength.

S&P Support Might Not Hold for Long

market is in holding pattern as traders are watching to see whether or not the S&P can hold above 2700. Money Flow measure and momentum had been deteriorated, suggesting that the support might not hold for long. A failure to hold above key price level means that long-term buying pressure has finally been exhausted. On balance, we remain near term neutral/negative for S&P as we believe market vulnerable to some downside retracement over the short-to-intermediate term

S&P Held Support but Upside Could be Limited

so far the oversold bounce has proved nothing as far as its staying power or as a possible trend reversal. While there is a high probability that the late-day rally will momentum but a close above S&P’s 2800 is needed before there is any real prospect of a change in the short-term downward trend pressure. 2700 is the line in the sand. A close below that level on a weekly basis will break the multi-year uptrend and increases the probability of a full-blow correction

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