Market Analysis for 15th Ocotber 2018
Good day trader, here we are ready to kick start another trading week. The retail sales data got released before markets opened in the US and seems softer because of the small negative; the market may interpret this positively given it mad slow some fed action.
Couple of nasty days last week and finished with a consolidated pattern, the Asian stocks put in a new low but we managed maintain our Friday predicted range, if we rewind to get perspective on our major indices we broke the trend line though we expected a retracement by touching the support and coming down to 25,000 points on the DOW which is a decent place to hold off and experience balance in the market.
The buying demand occurred at 25,972points before the breakout to the down, so for 15th October it probably will trade up to 26,000 points and if break up to the 26,500 points. This will be constrained at 26,000 points because the overnight distributed volume for the DOW is below the bulk of the transaction from the previous 2 trading days. However, of we have a break to the upside from the S&P 500, the DOW is likely alike.
S&P 500 came down to 2730 demand level below 2800 in a short order after breaking through 2800. On the S7P 500 we are not still at the previous corrective move from the crossing of the trend lines. Despite the magnitude of the selloff we are still not at the previous demand level of the previous sell off.
S&P 500 overnight volume occurred between 2740 points and 2770 points and the bands coming closer with a decent breakout. With the room above there is the possible sneak back up to 2842 and 2850 points with a tradable bounce and it is a smaller range than the NASDAQ. We need to be able to catch the momentum downwards if we cannot catch the trade up to 2842.
NASDAQ 100 is at a logical location to experience a possible balance but organisation like Microsoft have already started bouncing off from the lows likely around 5% while some have not caught up. The idea is we may be forming a bit of a logical reversal pattern; on the short term.
A similar overnight setup occurred with a more developed reversal in the NASDAQ 100. A resistance is at around 7,400.95 points in the short term with a possible buying pressure at 7204.67 points, this may be the high for 15th October in the NASDAQ 100 or can trade up to the 7400.95 at breakout.
Russell 2000 seems unhealthy because of the sell off and I may be taking a bearish positon for Russell because of the level of violation. The Russell touched the 200EMA and the trend lines violated increasingly. Market traded below the lower level of demand and seems weaker with the bears in control
We are experiencing weak dollar because of the retail sales number with a negative.
Conclusion
to action trades in these volatile times require traders to pay attention to the spread when trading especially options because they have widen. I will recommend traders to use the covered call strategies in this season of high or increase volatility.
Couple of nasty days last week and finished with a consolidated pattern, the Asian stocks put in a new low but we managed maintain our Friday predicted range, if we rewind to get perspective on our major indices we broke the trend line though we expected a retracement by touching the support and coming down to 25,000 points on the DOW which is a decent place to hold off and experience balance in the market.
The buying demand occurred at 25,972points before the breakout to the down, so for 15th October it probably will trade up to 26,000 points and if break up to the 26,500 points. This will be constrained at 26,000 points because the overnight distributed volume for the DOW is below the bulk of the transaction from the previous 2 trading days. However, of we have a break to the upside from the S&P 500, the DOW is likely alike.
S&P 500 came down to 2730 demand level below 2800 in a short order after breaking through 2800. On the S7P 500 we are not still at the previous corrective move from the crossing of the trend lines. Despite the magnitude of the selloff we are still not at the previous demand level of the previous sell off.
S&P 500 overnight volume occurred between 2740 points and 2770 points and the bands coming closer with a decent breakout. With the room above there is the possible sneak back up to 2842 and 2850 points with a tradable bounce and it is a smaller range than the NASDAQ. We need to be able to catch the momentum downwards if we cannot catch the trade up to 2842.
NASDAQ 100 is at a logical location to experience a possible balance but organisation like Microsoft have already started bouncing off from the lows likely around 5% while some have not caught up. The idea is we may be forming a bit of a logical reversal pattern; on the short term.
A similar overnight setup occurred with a more developed reversal in the NASDAQ 100. A resistance is at around 7,400.95 points in the short term with a possible buying pressure at 7204.67 points, this may be the high for 15th October in the NASDAQ 100 or can trade up to the 7400.95 at breakout.
Russell 2000 seems unhealthy because of the sell off and I may be taking a bearish positon for Russell because of the level of violation. The Russell touched the 200EMA and the trend lines violated increasingly. Market traded below the lower level of demand and seems weaker with the bears in control
We are experiencing weak dollar because of the retail sales number with a negative.
Conclusion
to action trades in these volatile times require traders to pay attention to the spread when trading especially options because they have widen. I will recommend traders to use the covered call strategies in this season of high or increase volatility.
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