The S&P 500 chart is showing a very interesting formation here. The market made a new high for two weeks in a row and now it has failed to make a new high for two weeks in a row. The Weekly MACD and stochastic are crossed down still but the RSI is in slight uptrend so we just need to see which way the market breaks. We had options expiry to end the week and that saw the market lower but this downside is not over yet I believe. A break below 1,830 would be very bearish. A break above 1,890 could see a rally into May to around 1,950 and then we could see some fireworks to the downside. The markets are officially into the sixth year now and that is extremely high risk. We will see in the next few weeks how this will end up. It is too early to say for now. I certainly did not expect the rally we had in February. I was quite sure that would be a top of the bull trend. Then again when the markets are under the control of the Fed and the HFT algo's anything is possible.
No comments:
Post a Comment