As I wrote in my
previous post S&P 500
might close below 200 ema on a daily chart and it did. This really accelerated the
fall and the index went as low as 2011.60 today. Although some bounces are
expected real support does not start till 1980-60 area. Bearish momentum is
really strong. Bearish head and shoulders pattern on the weekly chart predicted
the fall weeks ago. A lot of investors talked about it for a few years, but it
looks that only now their worst predictions might be coming true.
Despite
the fact the fall to 1980 is highly unlikely today some fundamental data coming
out from US might cause the index to continue falling lower till market close. You
can see that other stock indexes have already joined the party and are falling
too. Expect this process to continue till some fundamental data proves
otherwise. By the way, US 30 has already broken its key support which was at
17000. If you are intending to go long, better wait for the market to show you
when to do it.
Possible risk event is: Markit Mfg
PMI (AUG P) – Expected: 53.8, Previous: 53.8.
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