Yesterday E-Mini S&P 500 Futures tested the key reference levels 2037 (Single Print Reference level), 2033 (Mechanical Buying Reference) and 2026 (single Print Reference) and the value area formed completely lower which indicates that immediate trend is down. The attempted direction is clearly down.
Very recently IBM closed its previous gap zone around 148 and hovering over the 148 zone for last 2 days and interestingly the current rally had made 9 consecutive higher high and lower lows signalling a high probability of rally getting into pause mode. Also the hull of RSI indicates overbought situation around there. And trend is more likely to mean revert towards in the shorter term towards 138.
Market Opened Lower straight way went down to test the weak low @ 2033 but in the first 30min price got rejected below 2033 and formed a mechanical buying reference (weaker though and high odds of testing in the short term). This sort of action is bullish for the day but signs of aging trend.
The above charts shows the daily chart of JNK with RSI indicators pointing to oversold and high correlation between the S&P 500 and JNK bonds which indicates that both both S&P 500 and JNK (SPDR Barclays High Yield Bond ETF ) moves in tandem with each other. Possibilities of JNK & S&P500 signalling a shorter term top.
Yesterday E-Mini S&P 500 futures ended with a bullish engulfing bar with a overlapping value area. However the overall trend of the E-Mini futures looks aged and yesterday left a weak low at 2033 during the pit session. One Timeframing is seen on the weekly charts with 6 week of contentious one timeframing.
Weekly Charts in Amazon looks like topped as we seen strong counter rally during the end of year 2015. And the weekly bar looks like strong rejection from the peaks which indicates possible buyers are in control. Possibly 696.44 looks like a top so far.
Weekly Charts of S&P 500 shows that smooth RSI is completely oversold followed by a hook reversal which is a bullish sign that the current down trend is over. Weekly and Daily Sentiment in positive bias and the shorter term target could be coming around 2000. Volatility in the market is coming down and so the fear levels among the traders.
Iran has given up one path to atomic weaponry, its large time has been prolonged to at least a season, and ongoing IAEA existence has created ‘sneak out’ very difficult.
Last Friday Shanghai Composite witnessed yet another downfall of the Chinese Stock market when the entire nation was in deep slumber. Well, with the defeated efforts of the Chinese stock regulators in crystallizing newer initiatives to replenish the lost vigor of the Chinese stock market, resolutions to the problem seems to be farfetched.
With the aggravation of Greece’s predicament in the economical scenario, the country seems to be heading towards a loss of stature in the money market. Moreover, with the European Central Bank refusing to enhance support in favor of the Greek economy, the plight of the country has heightened.