The stage is set for the S&P 500 reacting to the Fed comments on Thursday. The bias is for movement higher and is supported by economic and earning reports. The market reaction to Fed comments is 50-50 in terms of movement up or down. Thursday's price action could set the tone for the next couple weeks.
Tuesday's price action in the S&P 500 was right on target. Unchanged the higher was the expected behavior. It would been a bit more positive if we had a higher close. The bearish level has been raised to 4460 in reaction to the weak close on Tuesday. My expectation is for a sideways move on Wednesday as the buyers continue to consolidate before the Thursday Fed meeting.
Monday gave us the follow-through that implies buyers are continuing to come into the S&P 500. The close on Monday creates a technical uptrend. The expected behavior on Tuesday would be arrange smaller than Monday's range.
The S&P 500 reached levels the buyers came into the market on Thursday and they follow through on Friday with a positive close. The issue now is this a result of sellers buying the take profits or has the price level gotten low enough to be attractive to buyers coming into the market. I think it is a combination of both and I do look for follow through to the...
Indications are Buyers return to the S&P 500 based on the lower shadow. This is based upon what I call behavioral Japanese candle charts. It is an approach that I have used with this tool since I 1st saw Japanese candles in Tokyo at Bank of America while I was teaching a course on another technical approach at the bank. I am looking for buyers to follow through...
The S&P 500 moves lower on the fed minute comments of tapering. Tapering has not occurred it is only a possibility later in the year but the market has reacted to the possibility that this could happen. When I see this type of market reaction, I discount the news because it's not reality. In addition, we have moved to levels that buyers have presented themselves...
The S&P 500 traded below its berries or sell level. However, buyers did inner this market and it traded and closed above that level. That means a sell at the bearish level is underwater at the moment. If the buyers are still present in the S&P 500, it is important to see Asia continue higher representing the continuation of buyers in this market. This can be an...
Soft retail and economic numbers out of China created concerns and selling in the S&P 500. The positive believe in the US economic situation caused buyers to enter the S&P 500 moving it to new highs. I do look for momentum to carry this market higher and it could have a start on that upward move in the Asia session.
The close of the S&P 500 indicates that buyers are willing to hold onto positions as they go in to the weekend. This is a positive indicator of confidence. We also need to be cautious because of the size of range and body of Friday section. This small size implies a potential loss of momentum. A logical reaction at the current levels would be a sideways move. I am...
The S&P showed a positive level of commitment on Wednesdays close. The right speed of price change is on target. It would be logical for the S&P to give us a rest day on Thursday, which means an inside type day. Friday will be important because there we want to see a level of commitment by buyers as we go into this weekend.
The S&P 500 has the right resiliency to imply further movement to the upside. The close on Wednesday indicated that buyers are willing to go home long this market. The right movement would be higher highs but not dramatic movement to the upside. The faster market moves to the upside the higher the probability that selling will come into the market.
The bias for the S&P 500 is to the upside. The current levels imply a sideways move for the market to catch its breath. However, we do not want to see the S&P 500 trading or closing below 4409. The economic outlook is still positive and it also appears that the market overall feels the same way. We still have the issue of the variant hanging over the markets...
On Monday the S&P 500 backed off based on concerns about the variant virus. Also, on Monday a shadow was formed on the lows which applies buyers came back into this market. Asia has opened and it's a bit softer. Monday's structure is potentially bearish but I'm not looking for a big move to the downside unless we get new news to stimulate sellers continuing to...
The close on Friday for the S&P 500 did not reach the goal of 4340. The issue is that this price action can represent a loss of momentum. It will be important when Asia opens up at 5:00 PM CST the buyers continue to support upward movement and the S&P 500. The idea being that Asia who has not had a chance to respond to Friday's market will continue upward buying pressure.
The stage is set in the S&P 500 futures contract for move to the upside. Be on alert for a move to the upside with a weak close which would be an ominous sign for next week's price action. However, I do think buyers are here and I do look for follow-through based on Friday's employment numbers and continued positive earnings. In addition, would anyone want to go...
The S&P 500 took a rest day on Wednesday. My expectation would be a sideways to higher Dave for Thursday's action. Even if the employment numbers are disappointing, it can be positive for the market because it would mean that the Fed would maintain its current policies with a weaker employment situation.
The price action on Tuesday and the strong close indicates that buyers are present in the S&P 500. We also have data on Thursday and Friday that could provide a stimulus for this market to move higher. On Wednesday, I'm looking for an inside the slightly higher movement and for buyers to remain in control. With this type of structure, it would typically require...
Although buyers failed to hold on to highs made during Monday's trading session, a sideways move is expected as the S&P 500 builds value at these levels. There's a lot of fundamental information coming out this week that implies a sideways structure is logical. We would need new market information to drive prices higher or lower in any dramatic fashion.