E SPX, Bitcoin, Gold, Oil And G6 Targets For The Week Of March 2nd

Last week we cautioned that a break below 3325 will lead to a retest of uptrend support. Weeks of ignoring the corona virus lead to panic selling and the SPX broke through several support levels to finish the week in bearish territory:

To put things in perspective, the chart below does a good job of quantifying the level of technical damage sustained by the market during the last week. It also helps identify similar occurrences in the past. It shows a clear distinction between pre and post ’09 levels:

Market breadth spent the week declining further until Friday, when it staged a modest rebound. Naturally, the question now is whether this rebound will lead to a significant oversold bounce, or whether the SPX will decline further before a meaningful upside move materializes, like it did in May ’19:

Although we can’t predict the future, or news flow over the week-end, we can nevertheless identify the key levels to keep an eye on when trading resumes. A break above 3000 will bring the SPX back within the Neutral zone, while a drop below 2880 will provide more fuel for the panic:

The sell-off in the major indices reverberated in other asset classes as well, and all of them exceeded their normal targets. Both Gold and Oil took a big hit. USD declined against the CHF, JPY and EUR, but gained against AUD, GBP, CAD and BTC.

For OIL, GOLD, BTC and G6 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. For intraday charts and update follow us on TradingView.

Disclaimer: Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money ...

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.


Leave a comment to automatically be entered into our contest to win a free Echo Show.