Emini S&P 500 expectations.

It is important to pay close attention to the extended section tomorrow evening. It might send clues about future price movement on Monday.

 

S&P 500 Weekly Price Forecast – stock markets crash again this week

The S&P 500 market broke down significantly during the week, slicing through the vital 2700 level, which is the 61.8% Fibonacci retracement level. This is a very negative turn of events I think quite frankly at this point we are looking at a market that has done an extraordinarily large amount of technical damage.

The S&P 500 initially tried to rally during the week, but the technical damage continues to be a major factor in this market, and it appears that the damage should continue to be something to pay attention to. Quite frankly after we see these types of breakdowns, it’s likely that rallies will be treated with suspicion, and sold off quite stringently. Are we likely to bounce from here? Quite frankly, I would suspect that it very well could happen, but signs of exhaustion would be opportunities to sell this market, perhaps off the daily chart not necessarily the weekly chart. The 2600 level underneath would probably be supportive, but the 2550 level is the 100% Fibonacci retracement level, which typically gets tested after you slice through the 61.8% Fibonacci retracement level.

At this point, I think that stock markets are extraordinarily dangerous, so I would not be a longer-term buyer until we get some type of supportive candle on the weekly timeframe, which at this point doesn’t look very likely. However, always keep an open mind and pay attention to what the markets telling you, it not trying to anticipate what’s about to happen. This is a market that has been shellacked and there are a lot of fearful traders out there right now. However, the selloff has been brutal enough that I think value hunters are going to show up relatively soon.

SOURCE:
By:Christopher Lewis AT FXEMPIRE

 

The Wall Street analyst who called this stock-market rout sees another nasty drop for the S&P 500.
Wilson predicts that the S&P 500 may fall to 2,450 or 2,500 in the coming weeks

There is more pain in the pain trade ahead.

That is according to Michael Wilson, Morgan Stanley’s chief U.S. equity strategist, who said, during an interview on CNBC midday Thursday, that a then-current market rebound belied a market that is badly damaged and ready to sink further.

Wilson describes current conditions as a “rolling bear market,” which began in February, and predicted that the S&P 500 index SPX, -1.73% could fall to between 2,450 and 2,500. That represents a roughly 8% to 10% drop from the broad-market benchmark’s current levels. “And we think we get there in four to eight weeks,” Wilson said.

Morgan Stanley defines a bear market as a selloff of 20% or more, with no recovery within 12 months.

Check out: MarketWatch’s stock market column for Friday

“Risk-reward remains unattractive for us,” he said. The Morgan Stanley analyst added that the current slump in stocks that wiped out the year-to-date return in the S&P 500 and the Dow Jones Industrial Average DJIA, -1.19% in a powerful move lower on Wednesday, “may last a bit longer.”


Read: Don’t ‘get too cute’ looking for a stock-market bottom just yet, chart watcher warns

Wilson said the “rolling bear market” taking shape is fueled by evaporating global liquidity as the Federal Reserve and central banks elsewhere are pulling back on crisis-era monetary policy and attempting to normalize their respective economies. He said “a lot of damage” has been done and said 80% of the rout may be complete.

Read: Watch out for ‘dead cat bounce’ in stocks because there is more pain ahead: Morgan Stanley’s Wilson

Back in September, Wilson was making ominous calls even as U.S. stocks were recovering from their February corrections, where the S&P 500 and the Dow fell 10% from their late-January peak.

At that time, Wilson pointed to a divergence in credit spreads and equity values as early evidence of a change in the market’s complexion.

“Divergences between equity markets and breadth or credit spreads can also persist for longer than one can stomach before they are resolved. The bottom line is they look to us like clear signals that nice weather may not be the right forecast,” Wilson said in a September note.

In July, Wilson predicted that the market would see its largest correction in months, with the rally showing signs of “exhaustion.” He wrote then: “The bottom line for us is that we think the selling has just begun and this correction will be biggest since the one we experienced in February.”

He warned that the coming downturn could disproportionately hurt investors who are heavily weighted in technology and internet-related names, including some of the so-called FAANG names that have been at the center of the recent uptrend in the market by dint of their advances year-to-date and their total market weight. FAANG is an acronym for popular, large-cap tech stocks consisting of Facebook Inc. FB, -3.70% Apple Inc. AAPL, -1.59% Amazon.com Inc.AMZN, -7.82% Netflix Inc. NFLX, -4.17% and Google-parent Alphabet Inc.GOOGL, -1.80%

On Thursday, the technology laden Nasdaq Composite Index COMP, -2.06%which tumbled into correction territory on Wednesday, enjoyed the sharpest rebound among peer benchmarks, up 2.5%, after it fell more than 4%, representing its worst single-session decline since Aug. 18, 2011, according to FactSet data.

Read: Fed’s Clarida says more interest-rate hikes is the best way forward

But if Wilson is correct, investors aren’t out of the woods yet.

The U.S. trade clash with China, which is beginning to be discussed more frequently by U.S. corporate executives on earnings calls, is among the factors market participants point to as a key catalyst for the current downbeat mood.

SOURCE:
MARK DECAMBRE
MARKETWATCH.COM

 

I detected some weakness (indecision) during the extended section as of now, watch out this closely, it might lead to more downward movement during the regular section....

 

Zero benefit reading that sockpuppet shit , Confirmation Bias at best or just plain brainwashing . MSM or " Analyst " opinion is zero use to any trader , only one opinion matters and thats from the guy with skin in the game . Turn that opinion junk of , Facts are all that matters . That clickbait rubbish does nothing but make advertising revenue

 

As of now, the indecision during the extended section sent price upwards, it hit my stop. Now let´s wait to see how price structure develops before taking action.

 

Market sold off brutally as expected, this was a huge sell off today.

 

The S&P 500 closed in correction territory. Last night during the extended section things looked like market wanted to drop even more and it did. There were a lot of shorting opportunities. Now the downtrend is still in place. Let´s look where where we can play again.

 

Now it is time to take a look at the extended section in order to find out clues about what the marker could do next...

 

S&P 500 Price Forecast – S&P 500 bounces to kick off the week

The S&P 500 bounced a bit to kick off the week on Monday, reaching towards the 2700 level. However, it does look as if it is struggling a bit, and I think at this point we are probably going to see selling pressure come in at that large, round, psychologically significant level.

The S&P 500 tried to rally a bit during the trading session on Monday and opened up strong. However, I think that this market will continue to suffer in general, as the technical damage done to the market was extreme last week. I anticipate that we will probably reach down towards the 100% Fibonacci retracement level, which is closer to the 2550 handle. Overall, if we do break above the 2700 level, then I think the market probably goes looking towards the2750 level. I am a bit cautious about buying this market, because quite frankly there are far too many negative things going on out there.

Expect a lot of volatility and don’t hang onto a trade for too long. I believe that the market breaking down below the 2550 handle would be catastrophic and should send this market much lower. As I record this video and write the article, it’s apparent that the buyers cannot hang onto the gains, and at this point I think short-term exhaustive candles are opportunities to start shorting this market. I’m a bit cautious about putting too money into work, and I think that caution is the better part of valor in this scenario. Be careful with your trading capital, because this is a market that could cost you a lot of it if you aren’t paying attention. Overall, I think that it’s difficult to buy this contract.

SOURCE:
By:Christopher Lewis AT FXEMPIRE