Yesterday I wrote:” Yesterday’s third session where the markets posted a positive close, could give way to a one consolidation day, but if the rally is due to continue, the upside will have to get resumed if not today, then Monday, and push prices above the 918.50 short term resistance and then above 925.00 from where the sell off gained momentum. It is not normal to have to trend consecutive session, so two side action may be seen during today’s session. The 908.50 area may be used as an intraday pivot, below it the
S&P could go for a test of the 901.00 level; above it the 918.50 may get tested.”
So, markets consolidated between my 908.50 and 918.50 band in a narrow range session. It is obvious that until the S&P does not close above the 918.50 area and the 925.00 the risk of pushing lower is a reality. It is also possible that the markets will hold during the week, end of the second quarter which may give way to some windows dressing as fund managers MUST come with something better than the previous quarter may give support to the markets, also, the shortened holiday week, has a bit of bullish sentiment, and just to end, the release of the unemployment numbers, next Thursday, which is a lagging economic indicator, even with a bad number, markets may be able to rebound. However, more consolidation may be seen between the 898.00 and 925.00 areas.
For today’s trading session, last Monday the markets sold off, so beware of long positions if the S&P is trading below 908.50, but try to keep a close eye on the
Nasdaq, if that market is trading strong, the S&P may follow it.
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Cfdspros.com - Written by Arthur Stern
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