Market Event which could bring trading opportunities
Another negative day… the third in a row for SP500. Short sellers are normally smarter than buyers and they do more research. Asia and Europe should balance the bear thesis next week. Markets await the Federal Open Market Committee (FOMC) meeting, which begins on Tuesday, where the U.S. central bank is widely expected to raise interest rates. The
The European Central Bank (ECB) confirmed that it will phase out the bond buying program in January 2019. I am wondering if any private player around the world can create the liquidity on such bonds. More on Reuters “The Governing Council intends to continue reinvesting, in full, the principal payments from maturing securities purchased under
The US market closed in a positive note today, however last week focus was risk management. Based on the price action yesterday afternoon and today one can argue that sellers did not have any interest in engaging at current levels. Short covering initiated at -5.5% from two weeks high Strong positions were bought in Tech
As you can see from the picture below. The SPX structure improved yesterday. Historically, once uncertainty is reduced the market usually move to the next resistance area. My opinion is that we are right at resistance. If Bears were correct on the last liquidation. We are right on the spot where selling can resume. PE
