S&P re-tests resistance for the third time
With Equities currently testing their upper resistance for the third time its critical to watch and see how the next few events are received.
The S&P500 is testing its upper resistance (~2665-2675) for the third time.
I think we are headed to see the S&P fail to mark above this level and again continue to consolidate sideways.
Consolidation would be expected and then IMO February will turn out to be the next leg down.
The next major events to watch will be Powell's Fed conference today at 2:30 and the headlines we get out of the China-US trade negotiations going on this week.
Watch to see how the market receives Powell's message today. It seems quite obvious that his "Data-Dependency" model very much includes the Price of the S&P as we have seen him cave in recent months.
The Major topic for today will be the Balance Sheet. Recalling his now infamous comment a couple months ago that he was going to let the balance sheet run off on "Auto-Pilot", he may be ready to cave on that as well.
How participants react to his language today will be indicative of the next leg in this market.
As it stands I am bearish on Risk Assets and see the next move in equities to be down.
Of course, the markets could take Powell's messages in the most bullish interpenetration and we could see a break today or tomorrow.
For me, a failed re-test of these levels would be evidence that equities are not ready to go higher and further consolidation is ahead.
If you are of the bear-camp like me, this is a good spot to put on positions with stops above 2680.
Thanks for reading
The S&P500 is testing its upper resistance (~2665-2675) for the third time.
I think we are headed to see the S&P fail to mark above this level and again continue to consolidate sideways.
Consolidation would be expected and then IMO February will turn out to be the next leg down.
The next major events to watch will be Powell's Fed conference today at 2:30 and the headlines we get out of the China-US trade negotiations going on this week.
Watch to see how the market receives Powell's message today. It seems quite obvious that his "Data-Dependency" model very much includes the Price of the S&P as we have seen him cave in recent months.
The Major topic for today will be the Balance Sheet. Recalling his now infamous comment a couple months ago that he was going to let the balance sheet run off on "Auto-Pilot", he may be ready to cave on that as well.
How participants react to his language today will be indicative of the next leg in this market.
As it stands I am bearish on Risk Assets and see the next move in equities to be down.
Of course, the markets could take Powell's messages in the most bullish interpenetration and we could see a break today or tomorrow.
For me, a failed re-test of these levels would be evidence that equities are not ready to go higher and further consolidation is ahead.
If you are of the bear-camp like me, this is a good spot to put on positions with stops above 2680.
Thanks for reading
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