🖼 Daily Technical Picture 📈 ➤ I'm not a nerdy Star Trek fan but it seems the phrase about resistance is appropriate here. For the S&P500, price is challenging the upper ceiling of the range that has unfolded from the start of October. ➤ A higher high has developed due to the temporary intrusion above the resistance level. This is a basic requirement to confirm a...
🖼 Daily Technical Picture 📈 ➤ If the chart is looking congested, that's because it is. This is due to the whipsawing, range bound, choppy conditions. I think I've ran out of other descriptions...coiling maybe. I'm pretty sure market-makers are having a good time of it and perhaps day traders too...although the intra-day volatility and news flow, it may be hard to...
🖼 Daily Technical Picture 📈 ➤ Without wanting to sound like a broken record, prices are still treading carefully around the important support/resistance level. ➤ That being said, the Bearish picture is progressively getting clearer. Not enough yet to pull any triggers but very close. Here's why and why not: ➤ S&P500 price once again rejected the opportunity to...
🖼 Daily Technical Picture 📈 ➤ Prices continue to dance around the key support/resistance levels. This time falling under my key level. ➤ It's not the only index doing this dance. STOXX50 is sitting right under the short-term resistance at 3484. On the other hand, DAX is hovering above the 12670 support. This also holds true for DJIA and NASDAQ, the former below...
🖼 Daily Technical Picture 📈 ➤ Today's price action is showing the importance of support and resistance levels. At market close, you can see the price just holding a key level after another eventful day. Price gapped higher at open, it then dropped to fill the that gap and then recovered. After hours trading is showing further upside pressure post Netflix earnings...
🖼 Daily Technical Picture 📈 ➤ Prices did at U-turn (again) and reversed all of Friday's losses with Financials/Banks leading the way. We are back in a ranging market with this yo-yo type action. Prices may attempt to move higher to the top of the larger range if VIX continues to contract. ➤ I took profits on my European long positions as exit signals were given...
EURO STOXX 50 Weekly Volatility Forecast 17-21 October 2022 We can see that currently the volatility is around 4.14%, falling from 4.33% of the last week.(using DAX volatility, which is highly correlated with euro stoxx 50/600) At the same time, its currently place on the 75th percentile based on the ATR calculations. With this in mind, around this percentile,...
🖼 Daily Technical Picture 📈 ➤ Despite the retracement lower on Friday following the Thursday price surge, I am still looking for further upside. This holds true as long as the we don't have a daily close below the lows. As mentioned previously, I am expecting a re-test of the low, this may be that test or it is still to come in the near future. My medium-term...
🖼 Daily Technical Picture 📈 ➤ That was some ride. Pre-CPI markets pumped higher by 1.5% before plummeting post data to -4% for the Nasdaq. Only then to climb back up and finish strongly by over 2%. Similar price action happened on 24th Feb 2022 as the war started in Ukraine. TBH, I expected this movement but certainly not the extent of the volatility. ➤ I...
🖼 Daily Technical Picture 📈 ➤ Minor down day in US indices. Pre-market was firmly positive until the PPI (Producer Price Index) numbers were released. It showed persistent inflation in the costs of production. These costs can be passed on to consumers and therefore feeds into CPI/Consumer inflation numbers. ➤ With CPI numbers coming out Thursday/today, we should...
🖼 Daily Technical Picture 📈 ➤ US indices returns were wide spread. With DJIA finishing flat and Nasdaq continuing to fall. Large intra-day gains were unable to hold up. S&P500 hit a new low but the daily close held above the previous yearly low set on 30th Sept that can be considered as temporary support. VIX may also be peaking. There is a potential for a good...
🖼 Daily Technical Picture 📈 ...for the Bears as equity prices continue to fall in an orderly manner. The NASDAQ closing on a fresh new low, S&P500 not far behind. That being said, we did see prices reverse aggressively when the S&P500 made a new daily closing low on 30th Sep, so there's that possibility once again. ➤ Across in Europe, the indices couldn't hold...
🖼 Daily Technical Picture 📈 ➤ Equities took a dive towards the lower support level. Note that this support level has already been violated by a daily close to set a yearly low on 30th Sep. This makes it less reliable as a line of defence. Still, price did bounce off that level prior to end Friday trade. ➤ The momentum is with the Bears but we should tread...
🖼 Daily Technical Picture 📈 ➤ There was a lack of follow-through by the Bulls as prices retreated Thursday, giving up yesterday's gains. This may just be a pause in proceedings but with VIX moving into my panic zone once more, I'm inclined to take a bearish stance. ➤ If I'm right, I'm looking for prices to test the yearly low with a potential higher low or a...
🖼 Daily Technical Picture 📈 ➤ Bears tried to push back the charging Bull and ended without success. Price bounced off the support line strongly. Clearly there are buyers at these levels. VIX contracted further. Is the panic over? ➤ I'm of the opinion that we may see the price rise a little more followed by a down move as a secondary test of the yearly low before...
🖼 Daily Technical Picture 📈 ➤ The United Nations (UN) is meant to save humanity from itself. I guess a floundering equity market does meet that remit especially with rumours of Credit Suisse troubles. Also, think of the millions of Baby Boomers who are retiring every day. They need to sell off their risky assets (i.e. equity portfolios) to buy safer alternatives...
🖼 Daily Technical Picture 📈 ➤ Wallstreet pulled out the oldest trick in the trading book to start off a new month: a fake breakout. A breakout occurs when price confidently breaks through a support or resistance level and closes beyond that level. This is what occurred on 30th Sept to set a new yearly low for the S&P500. Once the price breaks out, it tends to...
The S&P 500 index may perform noticeably better than the European stock market ( STOXX 50 ) in the event that the European Union experiences a sharp economic downturn. The S&P 500 to EURO STOXX 50 ratio, which gauges the relative strength of the US stock market in comparison to the EU stock market, has been largely flat so far in 2022. In the past, when the...