Monday 22 February 2016

SP500 At very interesting Psychological pivot.

I rarely comment on markets these days. However, the recent price action on Stocks (as well as many markets) are extremely interesting. Just over a week ago the psychology of the market, and various commentators, were along the lines of 'The world is about to end'. Maybe not quite that extreme, but I am sure you get the picture, it was an extreme of fear. Since then the bounce has been quite stunning, though with relatively little fanfare. The overriding chatter I sense is that this is just a bounce before further woes. However as the chart shows, there is a possibility that a much bigger rebound may be on the cards, at least with regard to the technical picture. Short-term signs are potentially a double bottom pattern over recent weeks if the market can break and hold above 1940/50. The twin hammer candles suggest that this may be quite possible, and if this does happen then this set the possibility of a move up to 2056 or even 2085. - Whilst this would not kill the formation of the overarching major topping formation, it would call into doubt for now. Equally failure to clear 1940/50, which may act as resistance for a few days, could turn the focus firmly back to lower levels.



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