Looking at oscillators it has some chance that we see a lower high ard these levels, and that momentum turns a bit bearish again. No doubt, Bulls will try their best today to hold indexes as high as possible.
Anyway, that is already clear the long term bullish trend lost a lot of power during last two months. ADX has been decreasing to super low levels (lower and lower), DMI has been zig-zag all around on the daily chart.
MACD slight negative divergence.
Meanwhile the total structure of US equity mkts has also been deteriorating. Nasdaq and Russell clearly underperforms and more and more bearish. Rotation back to safe big names? Leaders getting weaker and weaker.
Taper will go on as planned, and I really doubt ECB would launch QE any time soon, certanly not in next 2 months.
So what could give a decent push to see a further extension of the long term bull market? I envision a good chance for a deeper correction in May-June. I still prefer to load June Put options and bearish Put spreads, these have time to work. Puts for E-mini SP500 are really cheap, especially compared to the options on European Indexes. (Vol. is a lot different)
I do open outright E-mini SP shorts from time to time, but that can be frustrating sometimes, as this mkt clearly not favours trend trading.
Short term Key levels: 1867 / 1853 / 1838 (and 1885-1890 on the top)
Major Key Support: 1820
Anyway, that is already clear the long term bullish trend lost a lot of power during last two months. ADX has been decreasing to super low levels (lower and lower), DMI has been zig-zag all around on the daily chart.
MACD slight negative divergence.
Meanwhile the total structure of US equity mkts has also been deteriorating. Nasdaq and Russell clearly underperforms and more and more bearish. Rotation back to safe big names? Leaders getting weaker and weaker.
Taper will go on as planned, and I really doubt ECB would launch QE any time soon, certanly not in next 2 months.
So what could give a decent push to see a further extension of the long term bull market? I envision a good chance for a deeper correction in May-June. I still prefer to load June Put options and bearish Put spreads, these have time to work. Puts for E-mini SP500 are really cheap, especially compared to the options on European Indexes. (Vol. is a lot different)
I do open outright E-mini SP shorts from time to time, but that can be frustrating sometimes, as this mkt clearly not favours trend trading.
Short term Key levels: 1867 / 1853 / 1838 (and 1885-1890 on the top)
Major Key Support: 1820
