Thursday’s sell-off should have come as no surprise to readers of this column. It was telegraphed by the inability of the SPX to break above the 3210-3220 resistance zone identified last week, which was followed by a reversal and a break below the pivot line; price and market internals formed a negative divergence coupled with overbought market breadth readings. As an added bonus, the SPX found support at the downside weekly target:
The technical picture turned mostly bearish, with three sell signals and one weekly buy signal. The one remaining buy signal will reverse with a break below Thursday’s low:
Market breadth is bouncing between overbought/oversold levels, and is currently resting at the oversold line:
JPY, EUR, GBP, AUD and CAD reached their weekly targets, while GOLD and BTC and the 10Y Treasury continue their range-bound trading.
For OIL, GOLD, BTC and G5 weekly targets and Buy/Sell pivots, check the TV page which gets updated on Monday.
*Please note that the signals are provided for informational purposes only. They are in effect as of the close on Friday and may change as soon as the markets re-open.
Charts, signals, targets and data courtesy of OddsTrader, CIT for TradingView and NinjaTrader 8
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