• 517 days Will The ECB Continue To Hike Rates?
  • 518 days Forbes: Aramco Remains Largest Company In The Middle East
  • 519 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 919 days Could Crypto Overtake Traditional Investment?
  • 924 days Americans Still Quitting Jobs At Record Pace
  • 926 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 929 days Is The Dollar Too Strong?
  • 929 days Big Tech Disappoints Investors on Earnings Calls
  • 930 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 932 days China Is Quietly Trying To Distance Itself From Russia
  • 932 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 936 days Crypto Investors Won Big In 2021
  • 936 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 937 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 939 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 940 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 943 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 944 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 944 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 946 days Are NFTs About To Take Over Gaming?
How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

  1. Home
  2. Markets
  3. Other

The State of the Trend

Last week the expectation was that the markets need to consolidate their gains from the last couple of weeks, and that's what happened. On Friday the SP500 closed exactly in the middle of it's weekly trading range.

We also mentioned that the character of the market changed recently. That conclusion was based on the chart below:

The intensity of bullish sentiment increased dramatically after October 7th, and has since moved into the upper half of its range. Until this changes again, one has to avoid getting too bearish on the market.

MF Global, however, taught us that getting overly bullish too early can have disastrous consequences. And with Italy more prominent on the radar screen, there are no signs that the turmoil in Europe is coming to an end.

Considering the change in bullish sentiment, against the backdrop of an unresolved European financial crisis which threatens world markets, it should come as no surprise that both the bullish and bearish scenarios outlined last month are still alive. The chart below shows that we are half-way through the forecasted consolidation period:

Weekly support/resistance levels, courtesy of OddsTrader app (which perfecgtly framed last week's decline, see Nov 2nd entry) are 1292 & 1315, and 1218 & 1193, pivot line at 1240.

 

Back to homepage

Leave a comment

Leave a comment