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3 Apr 2015
S&P 500, near term pop higher? - FXA
FXStreet (Bali) - The SP500 technical readings argue for more wide chop and even a retest (and temp break) of the Feb 25th high at 2120, notes David Solin, Partner at FXA.
Key Quotes
"Broader view over the last few months of an extended period of wide chopping with a slight upward bias, continues to play out."
"However, lots of bigger picture negatives argue an eventual topping/rolling over and include poor upside momentum/good offers at slightly higher levels (classic distribution), and negative technicals (bear divergence/sell mode on the daily macd for example)."
"At this point however, there is still no confirmation that the final peak is in place/market rolling over (5 waves down, lower low/lower high, etc.), and in turn argues more wide chop and even a retest (and temp break) of the Feb 25th high at 2120, as part of this process (see in red on daily chart below)."
Key Quotes
"Broader view over the last few months of an extended period of wide chopping with a slight upward bias, continues to play out."
"However, lots of bigger picture negatives argue an eventual topping/rolling over and include poor upside momentum/good offers at slightly higher levels (classic distribution), and negative technicals (bear divergence/sell mode on the daily macd for example)."
"At this point however, there is still no confirmation that the final peak is in place/market rolling over (5 waves down, lower low/lower high, etc.), and in turn argues more wide chop and even a retest (and temp break) of the Feb 25th high at 2120, as part of this process (see in red on daily chart below)."