SPX and RTY to Reverse, Euro Wedge and Asia Short/Long Update

Favor Defensives as S&P 500 Tests 4165-4200; Buys in Consumer Staples & Europe/UK Telecomm

Is Global Liquidity Already Threated By America’s Upcoming Debt Ceiling?

Chart based progressive global trading strategies, Chart Partners

Thomas Schroeder

Chart based progressive global trading strategies

Chart Partners

Chart Partners objective is to discover medium-term cycle turns and profit opportunities before they unfold, within structural trends while preserving capital with clear degrees of risk. We have real return ideas. 

Markets are dynamic and trading systems must reflect this. It is crucial to determine underlying correlations and lead-lag relationships within global markets and the impact on linked instruments. Our weekly Chartonics product gives you short-term trading strategies that can be applied within the medium and longer term macro trends that are mapped out in our strategy updates. 

Our methodology fuses global market variables and isolates drivers in trends. We specialize in FX, index trade in NY and Asia with a focus on Asian stocks. 

Technical Analysis

<ul>
<li>Late April capitulation turn unfolding on the SPX trendline break and RTY wedge support breach. We turned bearish (shorting) on April 18 just under SPX 4,200.</li>
<li>A number of breakdown coming through in Asia - Korea's bear impulse and Taiwan's break of trendline support that turns the cycle to bearish. Japan will lag.</li>
<li>SPX MACD bear turn is in line with our late April bear phase. A cycle trough is due in 6 weeks time (second week of June).</li>
</ul>


Late April capitulation turn unfolding on the SPX trendline break and RTY wedge support breach. We turned bearish (shorting) on April 18 just under SPX 4,200.
A number of breakdown coming through in Asia - Korea's bear impulse and Taiwan's break of trendline support that turns the cycle to bearish. Japan will lag.
SPX MACD bear turn is in line with our late April bear phase. A cycle trough is due in 6 weeks time (second week of June).


S&P 500 INDEX

Late April Break for a 6-Week Decline