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Potential Pullback on S&P 500?The American S&P 500 returned to the region above 3100. Recently the index testing the upper limit of the daily Bollinger Bands, which is also near to the bullish channel resistance line. That's why we may looking to short this market rather we would like to see a buying opportunity underneath. The 50-day SMA is currently trading around the 3030 level, which is the top of the support “zone” that extends down to the 3000 handle. We like the idea of buying a bounce that we can take advantage of cheaper pricing. On upside the first target is at 3137, followed by 3200.
TVC:SPX
by ForexTrendline
3
DJIA Struggle to Stay Above 28,000 It didn’t take long for the major indices to get back to all-time highs, as they began this shortened holiday week with a solid rally on hopes for a trade deal. The prospect of renewed economic growth and favorable monetary policy have also played some roles for the rally. Overnight, DOW rose 0.68%, but lagged comparing it with S&P 500 and NASDAQ. Obviously, the market will continue reacting to whatever the current trade headline is - bad or good - with the relevant price action. The H4 RSI indicator is going to test the 70% area now. This could imply an aggressive profit-taking activity for the coming sessions. The inability to keep above 28,000 will be the first sign of selling pressure. Taking out 27,675 will indicate the selling pressure is getting stronger. The next support in that case will be the 50-day SMA on 4-hour chart which has risen to 27,489. On upside, the index seems ready to re-test the record high at 28,090. A clear break above it could extend the bullish pressure towards the upper line of daily Bollinger Bands at 28,237. Take in mind, that the trading activity will decline in the coming days because Thanksgiving Day, and of course the market is closed on Thursday and closes early on Friday.
TVC:DJILong
by ForexTrendline
BTC/Indexes: Bitcoin-Boom Index-BustPublished via phone. Trade based on your risk tolerance. I’ve recently published similar BTC-Index ideas but this one takes the cake. Regardless of whether a true correlation between BTC and indexes exists, the confluence of charted price, fib levels, and indicators should grab your attention. Price represents Bitcoin’s price deviation relative to Index market’s price deviation. Price has bounced off the potential 0 level of fib channel. Several indicators corroborate at least a moderate pullback if not a full on reversal. Here, a price reversal means an increasing difference in price between Bitcoin and Index market. This can happen a few ways: Bitcoin’s price increases while Index market’s price decreases, Bitcoin’s price increases more relative to an increase in Index market’s price, Bitcoin’s price decreases less relative to a decrease in Index market’s price.
BNC:BLX
by Teklologist
Should be a good week for the Russell 2000IWM, a fund that tracks the small cap Russell 2000 index, has been trading in a range for the last few months. When the large caps broke out above their all-time highs, the Russell held back and stayed range-bound. Today, however, the fund broke out above the top of that range at 161.11. Assuming that it confirms the breakout by closing the day above that price, we should see IWM continue to move higher and perhaps test its August high at 173.39. Large caps in my opinion have gotten ahead of themselves and look very expensive right now, so the opportunity in the market would seem to be in small caps. Check out this chart showing their current relatively inexpensive valuation compared to the S&P 500: Small caps tend to outperform in a low interest rate environment, so in the next 6 months I expect IWM to climb back up to .58-.60 per share vs. the S&P from its current level of .52.
AMEX:IWMLong
by ChristopherCarrollSmith
5
NASDAQ Technical analysisFor weeks, stock investors have been riding the waves of positive chatter on the trade deal, better-than-expected earnings, and a third rate cut by the Fed, to record highs. But please remember that it’s a two-sided game. The same events that drove indexes higher may be signaling they are ready to take back some of those gains. Looking ahead notable earnings reports today include Lowe’s and Target. Speaking technically, a sustained move above 8,340 will indicate the presence of buyers. This could trigger a rebound rally later in the session with the first target 8,360.00. This is a potential trigger point for an acceleration to the upside. A convincing move under yesterday's low 8,308.30 and the trend line of support will signal the presence of sellers. The first target is 50-day SMA on 4-hour chart at 8,119.4. A clear break under it will change the main trend to down. This could trigger a further break to the next bottom around psychological 8,000 support. Take in mind, that there also is located Ichimoku cloud. Our advice is to start looking for value areas and to try to avoid investing on the fear that you are going to miss a major rally. Signs of slower consumer spending, a pause in rate cuts and unstable trade negotiations are not reasons to chase stocks higher.
TVC:NDQ
by ForexTrendline
Could DAX30 Broke Above the Current Range?The momentum of the index has increased since the middle of August. But yesterday was a particularly bearish day for the German auto sector, as the markets responded to negative chatter from Beijing on trade. The DAX30 index remains stuck in a narrow 13,100 - 13,300 range that has been in place for almost two weeks. The sideways consolidation can continue for some more time and the DAX is likely to break above 13,300 and resume its upside trend towards 13,400 - 13,500 eventually. But until that happen the preferred trading strategy is Sells on the upper border of the range or Buys at the bottom limit. Today the price already tested the upper border of the Bollinger Bands and retreated. Now we expecting the price to test most probably the H4 50-day moving average at 13,115. If the DAX broke bellow it and under the downward line of Bollinger Bands, the bears could go further downside to the 23.6% Fibonacci retracement of the rally from October 4 to November 12 at 12,970. The German Bundesbank’s monthly report warned that Q4 growth could stagnate, but with only a slight risk of a prolonged recession. There are no major data releases scheduled for today. A lack of stats will leave the major German index in the hands of risk sentiment throughout the day. Geopolitics continues to be the key driver, with updates from the U.S and China on trade talks in focus.
XETR:DAX
by ForexTrendline
DJIA Stay In A Risk-On MoodUS equities rallied last week to new record levels with the Dow Jones Industrial Average breaching 28,000 for the first time. Soft economic data, Trump’s impeachment hearing, Hong Kong protests, and Middle East unrest were all considered secondary factors in investment decisions. Today European stocks kick off a new week a little flat, with more talks between the US and China failing to excite investors in the way they have been recently. So, what now? With the economic calendar being empty to during the start of the week, any trade updates will dictate the mood in markets. As things around the trade talks stand optimistic, the Dow is set to hold above the 28K level at the open. The market is trading on the strong side of an uptrending Gann angle from the 25,743 main bottom on October 3. Look for the uptrend to continue as long as the Dow futures contract holds above this angle. The 55-day moving average has risen to 26,972 and could provide support if the price begin to fall. A move through 27,400 will shift momentum to the downside. This will not mean the main trend has changed, but it will indicate the selling is greater than the buying at current price levels. While the nearest main bottom 25,743 hold, the uptrend is safe for now.
TVC:DJILong
by ForexTrendline
NASDAQ: Triple Top??? morning traders! NASDAQ is on its way to retest the market high the third time this year. 103.0 - 106.0 is a decent area of resistance and bets are high that we will see a retracement from it. Target levels will be 100 and 96 *also note that the previous daily candle was quite strong for this reason, it is preferable to wait for a confirmation before taking action. no matter what is your approach is, stop should be strictly set above the underlined resistance area.
NASDAQ:NDAQShort
by VasilyTrader
17