SPX turning point soon?
Hello traders,
Today we want to share with you our
SPX perspective as it starts to flirt with a very decisive zone at around 2400-2450.
Currently market seems to be a very decisive level for the market weather bearish sentiment will kick in soon or not.
Current fundamental important facts to consider:
As we look at our intermarket indications we need to be careful, as they currently still warn for a potential downside moves.
We always mention the importance of intermarket flows, as we believe that investors only repark their money due to sentiment and global macro-economic conditions. Therefore, we always keep in mind the in-and outflows with the help of our intermarket indications that lead us towards better timing when making a trading decision. As you might know that timing is one of the most important things when it comes to trading together of course with risk/money management.
As seen in the chart, two of our three intermarket indications already moving in extreme areas territory which might indicate a soon outflow of capital to other asset classes. We always take into account the BIG 4: Currencies , Bonds, Stocks and Commodities. Only the SPX/Bonds ratio shows still more potential to the upside. Investor may still move their capital to indices from Bonds. This action has still not reversed to reach its extreme on the flip-side!
Looking at the technical perspective and current trading range, we have seen an extreme up-rally in theSPX throughout the whole year so far. It currently trades at 2383 with its all-time at 2401. If Yellen gets supported by +VE US NFP figures on Friday, we might see some volatile movements around that current trading range. Additionally, very important key factors to consider is the current policy of Trump. His tax plan, infrastructure plan and his borderline tax ideas could influence the SPX significantly. We will keep you updated with that!
So, summarizing everything together, we believe thatSPX is currently at a very decisive zone and we need to take care. We will closely watch the actions of investors in terms of capital movements and the fundamental perspective within the FED rate probability. All these factors together we are currently at mid-term turning points where a move to the downside is also possible!
Either way we will keep you updated with possible trading setups!
As always, trading is a probability game nobody is 100% right and always use a stop-loss when trading. Trade with care.
We wish you much success,
The Secrets2Trade Team
Today we want to share with you our
SPX perspective as it starts to flirt with a very decisive zone at around 2400-2450. Currently market seems to be a very decisive level for the market weather bearish sentiment will kick in soon or not.
Current fundamental important facts to consider:
- FED rate hike (rate odds jumped in previous days significant higher as they currently are in 79.7% ( CME FED watch) for a march rate hike of 25 basis points. As Yellen spoke on Friday she mentioned to watch very closely at next Fridays NFP. They might be significant for a March rate hike.
- Of course another factor to mention is the huge influence of President Trumps policy as it may effect further gain within the stock market in several sectors. However, keep in mind that investors sentiment sometimes act before certain policies are taking place.
As we look at our intermarket indications we need to be careful, as they currently still warn for a potential downside moves.
We always mention the importance of intermarket flows, as we believe that investors only repark their money due to sentiment and global macro-economic conditions. Therefore, we always keep in mind the in-and outflows with the help of our intermarket indications that lead us towards better timing when making a trading decision. As you might know that timing is one of the most important things when it comes to trading together of course with risk/money management.
As seen in the chart, two of our three intermarket indications already moving in extreme areas territory which might indicate a soon outflow of capital to other asset classes. We always take into account the BIG 4: Currencies , Bonds, Stocks and Commodities. Only the SPX/Bonds ratio shows still more potential to the upside. Investor may still move their capital to indices from Bonds. This action has still not reversed to reach its extreme on the flip-side!
Looking at the technical perspective and current trading range, we have seen an extreme up-rally in the
SPX throughout the whole year so far. It currently trades at 2383 with its all-time at 2401. If Yellen gets supported by +VE US NFP figures on Friday, we might see some volatile movements around that current trading range. Additionally, very important key factors to consider is the current policy of Trump. His tax plan, infrastructure plan and his borderline tax ideas could influence the SPX significantly. We will keep you updated with that!So, summarizing everything together, we believe that
SPX is currently at a very decisive zone and we need to take care. We will closely watch the actions of investors in terms of capital movements and the fundamental perspective within the FED rate probability. All these factors together we are currently at mid-term turning points where a move to the downside is also possible! Either way we will keep you updated with possible trading setups!
As always, trading is a probability game nobody is 100% right and always use a stop-loss when trading. Trade with care.
We wish you much success,
The Secrets2Trade Team
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