[Click on the picture above to watch Murray analyse the S&P 500, gold and oil after the big move in markets over the past week.]
Quad witching hour happened last Friday in the States, so all eyes are on the market this week to see whether the buying spurt into expiry was a lot of hot air.
A daily sell pivot from here would be an interesting development in the short term. I’ll be getting extremely interested in going short in the market if we see a weekly sell pivot by the end of this week. I give you the levels to watch out for in the video.
Alternatively, if the market is in the early stages of adjusting to the new loose policy settings by the main central banks around the world, we may be in the early stages of a large impulsive rally. A confirmed breakout above the 2950 area in the S&P 500 which has been stiff resistance for 18 months could lead to a blow off rally that could last for months.
So it really is decision time for the S&P 500. I don’t want to stick my neck too far out in fear of getting it chopped off, but I’m thinking another false break of the high and short-term sell off back towards 2650 would wrongfoot most market players, so I am ready to position clients for that if we get the sell pivots.
It is imperative to wait for the sell pivots to occur before acting, though, because the current uptrend may continue unabated — so there is no need to jump in front of the steam train.
I also have a look at gold and oil in today’s update, because there has been some interesting moves of late, so it is worth pointing out the key zones to keep an eye on going forward.
Editor, Alpha Wave Trader
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