Founder & Chief Market Strategist - SAV Markets, SAV Markets

Shyam Devani

Founder & Chief Market Strategist - SAV Markets

Technical Analysis

The past 24 hours has seen a bearish outside day on the S&amp;P 500 e-mini futureThe last time we saw that was at the very high on 10 May when we finished at 4,183.From that level we fell an additional 154 points over 2+ sessionsAre we to see the same again and if so, what else could that suggest?

The past 24 hours has seen a bearish outside day on the S&amp;P 500 e-mini futureThe last time we saw that was at the very high on 10 May when we finished at 4,183.From that level we fell an additional 154 points over 2+ sessionsAre we to see the same again and if so, what else could that suggest?

The bounce back in the Nikkei 225 earlier this week might have initially looked 'constructive'However, judging from where it has so far stalled, the downside target of the 26,300-26,500 area still seems to be the danger in this environment. Refreshed chart below...

The bounce back in the Nikkei 225 earlier this week might have initially looked 'constructive'However, judging from where it has so far stalled, the downside target of the 26,300-26,500 area still seems to be the danger in this environment. Refreshed chart below...

Chart based progressive global trading strategies, Chart Partners

Thomas Schroeder

Chart based progressive global trading strategies

Chart Partners

Chart Partners objective is to discover medium-term cycle turns and profit opportunities before they unfold, within structural trends while preserving capital with clear degrees of risk. We have real return ideas. 

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<a href="https://www.smartkarma.com/entities/s-p-500" target="_blank" data-smartkarma-citation="entities:22886:1" rel="noopener">S&amp;P 500 (SPX INDEX)</a> is at a pivotal juncture after cracking micro wedge support at 4,160 on the back of weaker links breaking down (RTY and NDX) while the DJI just put in a lower degree wave 5 top at 35k.After a sharp two session rise we are shorting to measure a give back with pivot supports at DJI 33,100, NDX 13,300 and SPX 4,150 that act as fresh momentum triggers. Holding these levels would induce a meagre upside test on resistance levels to short into.DJI expected to underperform making this a top short bet. Tech and small caps once below pivot support will buckle again.

S&amp;P 500 (SPX INDEX) is at a pivotal juncture after cracking micro wedge support at 4,160 on the back of weaker links breaking down (RTY and NDX) while the DJI just put in a lower degree wave 5 top at 35k.After a sharp two session rise we are shorting to measure a give back with pivot supports at DJI 33,100, NDX 13,300 and SPX 4,150 that act as fresh momentum triggers. Holding these levels would induce a meagre upside test on resistance levels to short into.DJI expected to underperform making this a top short bet. Tech and small caps once below pivot support will buckle again.

Following last week’s note titled <a href="https://www.smartkarma.com/insights/us-equities-time-to-get-defensive" target="_blank" data-smartkarma-citation="insights:51332" rel="noopener">US Equities: Time to Get Defensive</a>, we suggested there could be a notable short term rotation from stocks to bonds this month and possibly next.While equities have slipped, the move down does not yet seem to be over.At the same time we now see a setup on the Long Bond future that is telling us a rally lies ahead. Could this be a short term setup that warrants further caution for Equities?

Following last week’s note titled US Equities: Time to Get Defensive, we suggested there could be a notable short term rotation from stocks to bonds this month and possibly next.While equities have slipped, the move down does not yet seem to be over.At the same time we now see a setup on the Long Bond future that is telling us a rally lies ahead. Could this be a short term setup that warrants further caution for Equities?

Cross Asset Strategy

A number of charts are beginning to show some concerns that draw attention to the annual mantra: ‘Sell in May and Go Away’We look at different measures and patterns on each of the three major US indices – Dow Jones, S&amp;P 500, and Nasdaq 100.In all cases there are important indications that a decent correction down is likely this month (and possibly beyond). This period should eventually result in buying opportunities, however first we are likely to see some pain.

A number of charts are beginning to show some concerns that draw attention to the annual mantra: ‘Sell in May and Go Away’We look at different measures and patterns on each of the three major US indices – Dow Jones, S&amp;P 500, and Nasdaq 100.In all cases there are important indications that a decent correction down is likely this month (and possibly beyond). This period should eventually result in buying opportunities, however first we are likely to see some pain.

United States

The Dow Jones Industrial Average is a price-weighted average of 30 blue-chip stocks that are generally the leaders in their industry. It has been a widely followed indicator of the stock market since October 1, 1928.

Dow Jones Industrial Average (INDU INDEX)

Dow Jones Industrial Average (INDU INDEX)

S&P 500: Price Action Notes

A closer look at the S&P 500 e-mini future gives fresh indications that lower levels are likely to be seen over the coming days and possibly even...

Shyam Devani

Nikkei 225 Fails at the Sell Zone

The rebound on the Nikkei earlier this week seems to have given a fresh opportunity to sell as we stall at the 28,300 pivot / sell zone

Shyam Devani

Weak Links Did Crack SPX Wedge Support

S&P 500 is at a pivotal juncture after cracking micro wedge support at 4,160 on the back of weaker links breaking down (RTY and NDX) while the DJI...

Thomas Schroeder

Bonds Set to Bounce

The setup in the Bond market suggests a short term bounce ahead (in price) which in turn could be a warning sign for further wobbles in equities.

Shyam Devani

US Equities: Time to Get Defensive

Historical comparisons and a look at the price action of US Indices are giving warning signs that this is one of those years where 'Sell in May'...

Shyam Devani