SPX closed below both 20 and 50 moving averages on 10 August 2017 and the last time we witnessed this was 6 July 2017. The index traded at 2490 on 8 August 2017 but closed at 2441 on 11 August 2017, represented by almost 2% move in a three trading days. The question is whether investors like you should start worrying about further bearish movement on SPX in the coming week.
Based on our forecast, the fact that SPX could not close above 50 moving average on 11 August 2017 could suggest downward bias in the near time. If further downside were to happen, we could potentially see SPX retrace to 2430 level. However, if the bearish momentum continues and the low at 2405 on 29 June 2017 were to be taken out, we could potentially see SPX retrace to 2380 level. On the other hand, if the bullish momentum resumes, we could potentially see SPX move back to the recent high at 2490 and if this high were to be taken out, we could potentially see SPX trade at 2530 level as our next target.
DISCLAIMER
Our research materials are provided for information purposes only. They should not be used or considered as an offer to sell or a solicitation of an offer to buy any securities. The research materials are prepared for general circulation and general information only. They do not take into account the specific investment objectives, investment knowledge and experience and financial situation of any recipient. Investors seeking to buy or sell any securities discussed or recommended in our research materials, should seek independent financial advice relating thereto and make his/her own appraisal of the tax or other financial merits of the investment.
Any opinions expressed are subject to change without prior notice. Our research materials are based on information from various sources believed to be reliable. Although all reasonable care has been taken to ensure that such information is not misleading, we make no guarantee, representation or warranty, expressed or implied as to its accuracy, adequacy or completeness. We do not accept any liability whatsoever for any direct, indirect or incidental, special or consequential loss of any kind arising out of the use or reliance on the information in our research materials.
Based on our forecast, the fact that SPX could not close above 50 moving average on 11 August 2017 could suggest downward bias in the near time. If further downside were to happen, we could potentially see SPX retrace to 2430 level. However, if the bearish momentum continues and the low at 2405 on 29 June 2017 were to be taken out, we could potentially see SPX retrace to 2380 level. On the other hand, if the bullish momentum resumes, we could potentially see SPX move back to the recent high at 2490 and if this high were to be taken out, we could potentially see SPX trade at 2530 level as our next target.
DISCLAIMER
Our research materials are provided for information purposes only. They should not be used or considered as an offer to sell or a solicitation of an offer to buy any securities. The research materials are prepared for general circulation and general information only. They do not take into account the specific investment objectives, investment knowledge and experience and financial situation of any recipient. Investors seeking to buy or sell any securities discussed or recommended in our research materials, should seek independent financial advice relating thereto and make his/her own appraisal of the tax or other financial merits of the investment.
Any opinions expressed are subject to change without prior notice. Our research materials are based on information from various sources believed to be reliable. Although all reasonable care has been taken to ensure that such information is not misleading, we make no guarantee, representation or warranty, expressed or implied as to its accuracy, adequacy or completeness. We do not accept any liability whatsoever for any direct, indirect or incidental, special or consequential loss of any kind arising out of the use or reliance on the information in our research materials.