Long S&P on Monday. Target around 1900
Updated
Since the early January selloff, we appear to be ranging into a tighter triangle consolidation pattern
Based on the assumption that the 0.236 Fib retracement support level will hold on Monday, I'd be looking for longs anywhere from 1871.8 (0.236 Fib) to 1881 (Fridays close), with a target of around 1900. Ideally an early trade entry, during the European session (or even Sunday nights Asian session).
Stop loss below the 0.236 Fib level.
This will depend on oil and the weekend news. However, we did see a breakdown in the correlation between S&P and oil on Friday, so perhaps oil will have less of an impact on the US stockmarket going forward
Based on the assumption that the 0.236 Fib retracement support level will hold on Monday, I'd be looking for longs anywhere from 1871.8 (0.236 Fib) to 1881 (Fridays close), with a target of around 1900. Ideally an early trade entry, during the European session (or even Sunday nights Asian session).
Stop loss below the 0.236 Fib level.
This will depend on oil and the weekend news. However, we did see a breakdown in the correlation between S&P and oil on Friday, so perhaps oil will have less of an impact on the US stockmarket going forward
Note
News : Deutsche Bank Credit Default Swaps went up 10%. As the largest bank in Europe, this put massive pressure on European equities today.Although there was a small rally overnight in S&P, once Europe open it was all down hill !
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