In today’s briefing:
- SPX and RTY to Reverse, Euro Wedge and Asia Short/Long Update
- S&P 500 Testing 4165-4200, DJIA Testing 34,280, Nasdaq Composite Testing 12,300; Stay Defensive
SPX and RTY to Reverse, Euro Wedge and Asia Short/Long Update
- Cycle: May/June a more negative cycle. Late April negative/ turn phase is unfolding with a squeeze surprise (2-3 session swing turns). Sell SPX 4,200 top zone. 4,100 break will open up selling pressure.
- RTY bear reversal at 1,790 resistance on track and the underperform favored US short.
- Euro wedge break would pick up slack as the USD/JPY rise stalls at resistance. Asian equity short, long updated levels.
S&P 500 Testing 4165-4200, DJIA Testing 34,280, Nasdaq Composite Testing 12,300; Stay Defensive
- We still recommend a tactical overweight to defensives (Staples, Utilities, Healthcare, and gold miners) as the SPX tests our 4165-4200 resistance range, and also resistance from the prior 1.5-month uptrend.
- As we await Wednesdays FOMC announcement, the DJIA and Nasdaq Composite are testing 1-year resistances at 34,280 and 12,300, the DXY appears to be inflecting higher, and breadth remains weak.
- While we still see a reach to 4300-4325 as possible, we believe playing for more upside is akin to picking up pennies in front of a steamroller.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
