S&P Rally Short Lived

With the tsunami of data this week, it was really hard to sieve out anything stellar             . At best, we had employment data that was above expectation on Wednesday, as well as a moderately improved ISM manufacturing index. PMI and Factory Orders left much to be desired. Central Bankers all over the world are scratching their heads and trying in futility to save face against waning markets and negative interest rates that have taken Europe by storm and seem to be spreading at a clip rivaling the Zika virus.

So why is S&P             rallying? As Keynes himself said, "The Market Can Remain Irrational Longer Than You Can Remain Solvent". With the overtly bearish momentum this year to date, a proverbial 'dead cat bounce' was due. But that's all it is. One of the prime directives of trading is to trade with the volume not against it. This recent buying volume is still paltry with respect to the selling volume which drove the market down.

Timing is everything in trading. When can we expect a turnaround? If we take a look at the chart of SPY             and apply some fibonacci analysis, we see a bearish butterfly pattern foreshadowing another bearish turnaround. If you apply fibonacci time slice analysis, you see that we can probably expect this to begin as early as tomorrow or to even by market close today.

The RSI seems to hint that the market is becoming overbought at this point, and we see a macd cross starting to form at 1 hour intervals. The OBV is still indicating positive pressure which indicates now is not necessarily the time to enter a short position. This is confirmed by the Aroon and ADX indicators as well.

Wait for a big bear candle tomorrow or by Monday, 2016-03-07. At this point you can set a stop loss at the base of that candle and ride the trade down to the 0.5, 0.382, or 0.236 levels drawn out.
ZH 简体中文
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 繁體中文
AR العربية
HE עברית
首页 股票筛选器 外汇筛选器 加密货币筛选器 财经日历 如何运作 图表功能 网站规则 版主 网站 & 经纪商解决方案 插件 图表库 功能请求 博客 & 新闻 常见问题 帮助 & 维基 Twitter
概述 个人资料设置 账号和账单 我的支持通知 联系支持 已发表观点 粉丝 正在关注 私人消息 聊天 退出