Equity bears take back hold

9 February, 2018

The equity bears are back in town and they most certainly have their claws out. Markets had briefly recovered and were looking upbeat for the most part, however there has been a change today in that the bears have come back into the market - especially as Central Banks continue to comment on the need to lift rates higher; the Bank of England was a classic case today. So for the markets it's looking like the good times in equities may be starting to wear off in the near term and the volatility is piling back in after a quick reprieve.

The S&P 500 while looking somewhat bullish after the recent fight back has taken another hammering today pushing below the 100 day moving average. A very strong bearish sign for traders in the market and looking even more ominous as it starts to move towards the 200 day moving average. If we saw a breakthrough of the 200 day moving average I would be surprised to see the bulls come back into the market in a hurry. The key support level to also watch tomorrow will of course be 2564 as the market looks to drift lower, followed shortly after by dynamic support at the 200 day moving average. Closing below this level would be a very strong bearish sign to say the least. If however the bulls do come back into the market then look for resistance at 2628 and of course the 100 day moving average. Above this level additional levels of resistance can be found at 2666 and 2698.

Across in the UK it has been a case of the bears taking a huge swipe again after the comments from Mark Carney about pushing rates up faster than analysts expected. It's going to be a hard sell for bulls to come back into the UK market anytime soon with that sort of bold talk and as a result the FTSE has fallen sharply.

The key level of 7100 has been pierced through by traders in the close of trading today and there is a very real possibility it may sink lower going into tomorrow's final day of trading for the week. Expectations around support levels can be found at 6974 and 6914. Obviously this is quite a distance away, but the volatility in this case warrants such major levels in order to ascertain where market direction may inevitably end up. Resistance levels can also be found at 7205 and 7278, with the old bullish trend line likely to act as dynamic resistance in the event the bulls do take control in these turbulent times.


Source link  
U.S. stocks on track for worst December

December has so far been one of the worst year-ends for global investors in recent history. The S&P 500 has fallen 4.6% from the beginning of the month...

What outcome to expect to from Vienna

A few months ago, some investors speculated that Oil prices could reach $100 per barrel in 2018. Sanctions on Iran, shortages in supplies, strong demand...

Trade truce provides boost to risk

Just a few days after Fed Chairman Jerome Powell unexpectedly signaled that the Federal Reserve is turning dovish, investors received further positive news...


Risk assets rally on Powell Put

Investors were all ears for yesterday's speech from Federal Reserve Chairman Jerome Powell at the Economic Club of New York. A couple of keywords...

Brexit to dominate the headlines

Two months ago, U.S. equity investors cheered a new all-time high on the S&P 500. Stocks advancing to new record numbers started looking as a normal...

iPhone sales indicate economic growth?

The recovery in U.S. stocks from October's slump evaporated on Monday with the Dow Jones Industrial Average falling more than 600 points, while the Nasdaq...


Saudi comments at OPEC support Oil price

The initial headlines coming out of the OPEC meeting in Abu Dhabi that Saudi Arabia has committed itself to lower production output should be enough...

Risk assets boosted by divided Congress

Asian stocks followed Wall Street higher after U.S. mid-term elections produced a divided Congress on Wednesday. All major U.S. indices climbed more than...

Rand rallies on risk appetite

Financial markets are continuing their forward drive on the realization that investors were rightly positioned for the outcome of the mid-term elections in the United States.


In the past 24 hours Bitcoin has lost -2.13% and reached $3483.08693346. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has lost -0.4129% and is now at $1.1327. Start trading and making money on Forex today.

In the past 7 days Ethereum has lost -17.33% and is now at $91.3097103125. Have the most popular cryptocurrencies compared online 24/7.


Top Brokers offering Forex Market Analysis



Forex Currencies Forecasts



Top 10 Forex Brokers 2018

# Broker Review
1easyMarketseasyMarkets92%
2FXTMFXTM88%
3HYCMHYCM87%
4Alfa-ForexAlfa-Forex86%
5FxProFxPro85%
6FIBO GroupFIBO Group84%
7OctaFXOctaFX83%
8HotForexHotForex82%
9AvaTradeAvaTrade80%
10FXCMFXCM78%
  


Share: