A look at the International Stock Markets and Stock Market Indicators from Craig Inglis, Client Education Manager, CMC Markets.
Stock Market Indicators - 26 May 2010
The SPX 500 has reached yet another support level at 1043, can it hold?
The MACD is again showing an acceleration in the downtrend, the RSI has just entered oversold territory and the Slow Stochastic shows room for further downside.
However, there appears to be multiple levels of additional support slightly below 1043 at 1028, 1016 and 991.
Interestingly there could be a fine example of Elliot Wave theory on the SPX 500 weekly, shown in the second of the two charts.
If this is the case then we could be in the A phase of the corrective wave which might indicate us to expect a move higher followed by another move much lower.
SPX 500 Daily Chart
SPX 500 Weekly Chart
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Looking at yesterday’s performance of the UK 100 we can see that the Index bounced in early morning trade but it still has some distance to travel for the market to be confident of a true recovery of last weeks events.
Resistance remains at 5444, which is the top of a doji/evening star
formation which could be difficult to overcome from in the short term.
The RSI and Slow Stochastic have already rebounded from their oversold
sections meaning that further weakness could still be possible.
The MACD has still failed to provide a bullish crossover.
Many traders will be waiting for a clearer picture before re-entering
this market especially with so much uncertainty over the economic
outlook.
Spread betting, CFDs and FX are leveraged products and carry a high level of risk to your capital. It is possible to lose more than your initial investment. These products may not be suitable for all investors, therefore ensure you understand the risks involved and seek independent advice if necessary.
The above content does not constitute investment advice. Neither CMC Markets nor Online-Spread-Betting.com accepts any responsibility for any use that may be made of the above.
Article approved by CMC Markets. CMC Markets is authorised and regulated in the UK by the Financial Services Authority, registration no. 173730.
A huge rebound on the UK 100 yesterday has been capped by a short term sloping resistance.
We have a death cross on the 21 and 55 Day SMA which is continuing to give a negative slant to the index.
The MACD is showing a deceleration in the downtrend but is some distance away from providing a bullish crossover.
Any move beyond the sloping resistance would be a clear sign that the markets are willing to break higher and would be met with continued buying enthusiasm.
Continued failure to break the resistance, coupled with continued economic woe from Europe, could result in a return move towards 5000.
The technical picture has been made more difficult across many markets due to last Thursday’s blip.
Spread betting, CFDs and FX are leveraged products and carry a high level of risk to your capital. It is possible to lose more than your initial investment. These products may not be suitable for all investors, therefore ensure you understand the risks involved and seek independent advice if necessary.
The above content does not constitute investment advice. Neither CMC Markets nor Online-Spread-Betting.com accepts any responsibility for any use that may be made of the above.
Article approved by CMC Markets. CMC Markets is authorised and regulated in the UK by the Financial Services Authority, registration no. 173730.
The SPX 500 closed bang on the support at 1168 but has slipped back below in early trading.
With the formation of a Head and Shoulders pattern at the top of the recent up trend and the black MACD line crossing the zero line, further downside seems possible.
The RSI and Slow Stochastic also show room for a move lower.
Only a comfortable close above 1168 would send a signal to the rest of the markets that the SPX 500 has an aversion to going lower, coupled with yesterdays hammer candle stick pattern.
Continued failure to close above 1168 opens a path lower towards the next support at 1151, which is close to a price projection from the break of the H&S formation.
Spread betting, CFDs and FX are leveraged products and carry a high level of risk to your capital. It is possible to lose more than your initial investment. These products may not be suitable for all investors, therefore ensure you understand the risks involved and seek independent advice if necessary.
The above content does not constitute investment advice. Neither CMC Markets nor Online-Spread-Betting.com accepts any responsibility for any use that may be made of the above.
Article approved by CMC Markets. CMC Markets is authorised and regulated in the UK by the Financial Services Authority, registration no. 173730.
The S+P 500 has recovered quickly from the Greek Debt inspired European meltdown and is close to re-testing resistance at 1218
The danger here is the evidence of bearish divergence on the RSI and Slow Stochastic, signals of a potential reversal
If the S+P 500 begins to flatter even before we even reach the resistance, we could see the formation of a Head and Shoulders pattern (another traditional reversal signal)
However any break and close above 1218 would alleviate any short term concerns of a reversal and keep the index on a bullish path
Continued failure to breach 1218 would result in drift lower, towards the support at 1180.
Spread betting, CFDs and FX are leveraged products and carry a high level of risk to your capital. It is possible to lose more than your initial investment. These products may not be suitable for all investors, therefore ensure you understand the risks involved and seek independent advice if necessary.
The above content does not constitute investment advice. Neither CMC Markets nor Online-Spread-Betting.com accepts any responsibility for any use that may be made of the above.
Article approved by CMC Markets. CMC Markets is authorised and regulated in the UK by the Financial Services Authority, registration no. 173730.
The UK 100 has smashed through some important support levels and is currently trading below the 55 Day SMA.
The MACD is close to breaking its zero line and the Slow Stochastic has plenty room to drift lower, both potentially bearish signs.
The RSI is about to enter over sold territory but any signal to buy back into the market is only generated if it breaks back thorough the 30% level.
The broken support at 5585 would now be expected to act as resistance, if this holds then the market could be expected to keep on dropping towards the next support at 5394.
Only a close above the new resistance at 5585 would change the short term outlook for the UK 100 to be more bullish.
Spread betting, CFDs and FX are leveraged products and carry a high level of risk to your capital. It is possible to lose more than your initial investment. These products may not be suitable for all investors, therefore ensure you understand the risks involved and seek independent advice if necessary.
The above content does not constitute investment advice. Neither CMC Markets nor Online-Spread-Betting.com accepts any responsibility for any use that may be made of the above.
Article approved by CMC Markets. CMC Markets is authorised and regulated in the UK by the Financial Services Authority, registration no. 173730.
Note - Spread Betting carries a high level of risk to your capital and you can lose more than your initial investment, it may not be suitable for all investors. Ensure you only speculate with money that you can afford to lose and that you fully understand the risks involved and seek independent financial advice where necessary.
'Stock Market Indicators', Feature by D. Jones, last update: 26-May-10
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