![]() ![]() ![]() Traders will now watch to see if the S&P 500 can hold at 3,900 – 3,950, as a break below that “would likely bring more bears out of hibernation,” he says. If you’re feeling a sense of déjà vu, it’s because most of the major declines over the past year started off this way,” said Dunuwila. “As we know, failed breakouts are often followed by sharp moves lower. He described Tuesday’s action as a classic “failed breakout.” The Chart Report’s Patrick Dunuwila made a similar point about what would happen if stocks fell further. ![]() Finally, this would also involve breaking the larger uptrend from last October’s lows.” (For those that wish to give this rally a bit more slack, 3900 should also be important.) Such a move would involve slicing back under the 200-day moving average in SPX as well as undercutting the 61.8% retracement zone of the prior low to high range. “Only if SPX undercuts 3945 would I fear that a larger decline might be in store. However, Newton accepted that further declines will make stocks even more vulnerable. “Treasuries look to have sold off in a near-perfect 5-wave decline from 1/19/23, which means that this bounce in yields also should be nearing completion.” Given that the market continues to be led by moves in government bond markets - reflecting expectations of Federal Reserve monetary policy trajectory - any retracement in yields will also underpin stocks, he said. “Thus, some short-term price and time confluence is approaching,” Newton wrote. Additionally, this week represents a 50% time retracement of the prior low to high swing from late December 2022,” he said. “rices are now hovering right above the all-important 50% retracement area of the prior low to high range. Other technical factors may also provide assistance to equity bulls. While many blame the shortened holiday week for this lack of volume spike, one would think that volume would be at least a bit more than average on the worst trading day of the year,” said Newton. “Despite SPX having logged the worst trading day performance-wise in over two months’ time, volume was sub-par. He noted the low volume during Tuesday’s slide, which suggested the desire to dump stocks was limited. “The near-term decline in has now closed in on important support, which should likely provide a possible low to this pullback sometime over the final three days of this short week,” Newton wrote. In a note to clients published late Tuesday, Fundstrat’s head of technical strategy Mark Newton said technical factors and the end of a rally in bond yields should help stocks recover ground in the short term. The latest slide on Wall Street has left the stock market at “important support” but one which should provide a “reversal back higher,” according to a closely watched research boutique. Investors returned from a three-day break on Tuesday in a pessimistic mood, as the S&P 500 SPX, -2.00% saw its biggest drop of the year. The company was incorporated in 1994 and is headquartered in Seattle, Washington.Thud. It serves consumers, sellers, developers, enterprises, content creators, and advertisers. Additionally, the company offers Amazon Prime, a membership program. ![]() Further, it provides compute, storage, database, analytics, machine learning, and other services, as well as fulfillment, advertising, and digital content subscriptions. In addition, the company offers programs that enable sellers to sell their products in its stores and programs that allow authors, musicians, filmmakers, Twitch streamers, skill and app developers, and others to publish and sell content. It also manufactures and sells electronic devices, including Kindle, Fire tablets, Fire TVs, Rings, Blink, eero, and Echo and develops and produces media content. The company's products offered through its stores include merchandise and content purchased for resale and products offered by third-party sellers. It operates through three segments: North America, International, and Amazon Web Services (AWS). engages in the retail sale of consumer products and subscriptions through online and physical stores in North America and internationally. ![]()
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