S&P500 Short-Term Update |
S&P500: 1154.41
Short-Term Trend: weak downtrend
Outlook: The market gapped down last Tuesday and made a low at 1140, but then rallied to 1204 before turning lower again. This price action is a clear sign of the huge volatility that is still present on this market (VIX has never fallen below 30 during the recent rally attempts!). Right now the picture remains quite bearish as the prices are still well below the declining 100-day and 200-day moving averages. And with the last Friday's action we have a small sell signal from the daily Stochastics too. So, overall I expect lower prices in the next couple of weeks. My downside target is at 1060 but lower downside potential is of course possible.
On the upside, only firm and sustained break abv 1210 will turn the daily chart somewhat positive and gains twd 1250/60 will be favored in this case…
Strategy: Trading from the short side is favored. Stop=1200/10. Target=1060.
About the author: Alexander Nikolov
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