FXEMPIRE
All
Ad
Advertisement
Advertisement
Christopher Lewis
Add to Bookmarks
S&P 500 weekly chart, February 11, 2019

The S&P 500 has tried to rally during the week, breaking above a downtrend line. However, we have turned right back around to form a massive shooting star the weekly chart, which of course is a very negative sign. This doesn’t silly me that were going to break down right away, but it certainly is a bit concerning. The lack of volume on the move higher is something to be concerned about. I think at this point, you should also pay attention to the fact that the 61.8% Fibonacci retracement level has shown itself to be important as well, so at this point I think that it’s likely that a break below the bottom of the candle stick should kick off another move lower.

S&P 500 Video 11.02.19

The catalyst are varied, not the least of which will be the US/Chinese trade issues, but I think also we have to worry about a government shutdown which seems all but certain. Quite frankly, with all of these political concerns, it’s not a surprise that the market would struggle to overtake the massive bearish candle stick that kicked off the major selloff recently. Because of this, I believe that we are more than likely going to see lower rather than higher pricing. However, if we were to turn on a break above the top of the shooting star for the week, that would be an extraordinarily bullish sign and send this market looking towards the 2800 level rather quickly as it would be a breach of major selling pressure. Either way, buckle up it’s about to get volatile.

Advertisement
Know where the Market is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

Please let us know what you think in the comments below

Advertisement
Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker