S&P500 once underwent a painful week when it fell sharply to critical support at 23% Fib retracement level.
First two weeks of 2016 signal a difficult year for investors holding stock. The third week is a big question.
BUY in dip or continued SELL ?
There are three reasons explain for the fall of stock this week:
- China slowdown.
- US corporation profit fell 5% last quarter.
- FED liftoff.
However, I also find two reasons to BUY US equity:
- The divergence between US and the rest of world proves US Equity market is a good place to invest.
- US economy is not in recession.
US Stock market seems ignore all positive data recently such as : Reuter/Michigan Sentiment or payrolls. This week, main data is US CPI, if it is positive, investors should rethink their positions. They can't ignore all good news.
Depend on what reasons market chooses, SPX would follow that reason.
- If SPX breaks the critical support at 1880, next support at 38.2% Fib retracement level is next floor.
- If SPX bounces from the support, we will see BUY in dip.
I choose BUY IN DIP
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Sforex Solution: Do the right thing – Think the right way
First two weeks of 2016 signal a difficult year for investors holding stock. The third week is a big question.
BUY in dip or continued SELL ?
There are three reasons explain for the fall of stock this week:
- China slowdown.
- US corporation profit fell 5% last quarter.
- FED liftoff.
However, I also find two reasons to BUY US equity:
- The divergence between US and the rest of world proves US Equity market is a good place to invest.
- US economy is not in recession.
US Stock market seems ignore all positive data recently such as : Reuter/Michigan Sentiment or payrolls. This week, main data is US CPI, if it is positive, investors should rethink their positions. They can't ignore all good news.
Depend on what reasons market chooses, SPX would follow that reason.
- If SPX breaks the critical support at 1880, next support at 38.2% Fib retracement level is next floor.
- If SPX bounces from the support, we will see BUY in dip.
I choose BUY IN DIP
F.B page: www.facebook.com/trackingforexsignals (tinyurl.com/jxayluk)
Web page: www.trackingforexsignals.com
Twitter: twitter.com/SforexSolution
Contact: admin@trackingforexsignals.com
Sforex Solution: Do the right thing – Think the right way