We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Mixed
Oil - US Crude
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Bullish
Gold
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bullish
USD/JPY
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Heads Up:🇺🇸 Fed Beige Book due at 18:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-07-15
  • New York #Fed Executive VP Logan: - Uncertainty from COVID-19 makes future-shock protection prudent - BBG
  • Trump inclined towards holding off on sanctioning Chinese officials currently $USDCNH
  • Canadian #Dollar Price Outlook: $USDCAD Returns to Range Support - #Loonie Levels- https://t.co/Jryw74dPkT https://t.co/8rDsCdLbFb
  • US Treasury Yields: 2-Year: 0.151% 3-Year: 0.175% 5-Year: 0.279% 7-Year: 0.459% 10-Year: 0.617% 30-Year: 1.317% $TNX
  • RT @FirstSquawk: U.S. TO BACK NATIONS WHOSE SOUTH CHINA SEA CLAIMS CHINA VIOLATED
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.92%, while traders in US 500 are at opposite extremes with 75.19%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/q96ash6VEz
  • Canadian Dollar (CAD) is coming under pressure as FX traders digest dovish central bank outlook underpinned by sluggish inflation expectations post-COVID. Get your $USDCAD market update from @RichDvorakFX here: https://t.co/PWUPp1tbfa https://t.co/ksOeej284m
  • Commodities Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 1.09% Silver: 0.75% Gold: 0.13% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/HmQWswBdHh
  • Forex Update: As of 16:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.70% 🇳🇿NZD: 0.58% 🇦🇺AUD: 0.39% 🇬🇧GBP: 0.25% 🇪🇺EUR: 0.08% 🇨🇭CHF: -0.38% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/BQ6phOiioU
S&P 500 - Everybody Too Bearish Too Soon?

S&P 500 - Everybody Too Bearish Too Soon?

2016-01-19 14:45:00
Kristian Kerr, Sr. Currency Strategist
Share:

Price & Time covers key technical themes daily and can be delivered to your inbox each morning by joining the distribution list: Price & Time

Talking Points

  • S&P 500 rebounds aggressively from last week’s low
  • 1955 area remains important upside pivot

S&P 500: Everybody Too Bearish Too Soon?

S&P 500 - Everybody Too Bearish Too Soon?

The lead story on the nightly news Friday was about equity market weakness. This combined with some of the dire news covers over the weekend, AAII bullish sentiment at its lowest level in over 10 years and a spike in searches for “sell stocks” on Google to a seven-year high and it wasn’t hard to imagine that US equity indices might try and rebound aggressively. We certainly seem to have gotten that with the S&P 500 looking to open well above 1900 this morning. The 1955 area looks to be the key level on the upside over the next few days as traction above there would alleviate some of the immediate downside pressure and potentially open the door to a more important move higher.

Looking for real-time forex market sentiment? Get it HERE

Even if the decline of the past few weeks is the start of a more important bear market, as so many suggest, it is not inconceivable to think that some aggressive rallies could materialize. Unlike bull markets which have a tendency to grind higher, bear markets usually unleash a so called “traders environment” that entails large swings in both directions. In 2008 and 2009, for instance, when US equities were in the midst of a bona fide bear market the indices were down around 10% on the year by MLK day and reversed more than 9% both times afterwards. I am not saying history will repeat, but it is a good warning on the pitfalls of getting too bearish at the start of the year.

My cyclical analysis suggests next week could prove important for a variety of markets including equities. Continued weakness under 1870 would have me looking for potentially important low, while a continuation of the current recovery would set up a possible secondary high of some kind.

Looking for real-time forex market sentiment? Get it HERE

--- Written by Kristian Kerr, Senior Currency Strategist for DailyFX.com

To contact Kristian, e-mail instructor@dailyfx.com. Follow me on Twitter @KKerrFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.