Not saying we're gonna crash, but the pattern is clear, especially when paired with upcoming liquidity calendars.
This is my best guess on the target. Could be Monday, could be a week from then, but it's coming.
Yesterday, several influencing decisions on easing monetary policy from the “echelon” were coming out of the Central Banks. In particular, New Zealand’s central bank cut interest rates a steep 50 basis points. The Reserve Bank of India also cut the rate by 0.35%, as well as the Bank of Thailand by 0.25%.
As a result, The New Zealand Dollar has been depreciating...
The most common tweets I'm seeing this morning are "yesterday's/overnight lows should be re-tested" and "sell the rally at xxxx level."
Feels like the more uncomfortable trade would be to hold (or add to) my longs from yesterday. So yeah, that's what I want to do
Its not an ideal set-up, but its still a breakout with multiple levels of support below.
Bottom line, we have a downtrend breakout and some technical confirmation. Again, its not a slam dunk.
But my gut tells me sentiment got overly bearish, so there is fuel for a rally. And we have a whole lot of support levels all the way down to $277 SPY to hold a sell-off -...
I'm going long here, with sentiment clearly bearish after the China headlines and very short-term nitpicky technical weakness. Even bears accept (are hoping for a dip) to 2,750. Any dip down would be with some clear technical divergences, which tells me everyone is waiting to buy down there. I'll take a shot being early.
I'll buy SPY and QQQ Calls - early June...
SPX broke the short-term downtrend yesterday, but technicals didn't really confirm and we're seeing no follow-through today. We also saw pretty much an immediate reversal back to the support.
We should bounce off support (looks like we are as I write this), but resistance is right up overhead. If we go back down and support doesn't hold, next stop would likely...
One thing to note is that the market might be trying to fake a move similar to March. So far, on the surface it looks like the week-long pullback in March, which led to more rally.
Today, price action looks similar but the whole set-up is different
1. Below the 50-day MA
2. MACD in negative territory and resolving a long negative divergence
3. DMI more...
ES Futures confirmed its downtrend. For today, I see support at 2,860, but more likely 2,840. In either case, I would cover shorts, but not go long. The downtrend has been confirmed and we are really only in day 2, as MACD and DMI just turned yesterday.
Plenty of charts showing doji's, spinning tops, hanging man, and inverse head and shoulders on the major indices, all pointing to why the market should correct in the coming weeks. Add this trendline break to the list of reasons for the same.
No prediction or price target, but a 3rd close below this line would suggest a change in momentum, if not a full reversal.