News & Analysis at your fingertips.

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
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Bullish
GBP/USD
Mixed
USD/JPY
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
More View more
Real Time News
  • 🇿🇦 Balance of Trade (OCT) Actual: ZAR36.13B Previous: ZAR33.51B https://www.dailyfx.com/economic-calendar#2020-11-30
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 94.25%, while traders in Germany 30 are at opposite extremes with 77.17%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/dYXU7ukRwn
  • Heads Up:🇿🇦 Balance of Trade (OCT) due at 12:00 GMT (15min) Previous: ZAR33.51B https://www.dailyfx.com/economic-calendar#2020-11-30
  • Commodities Update: As of 11:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: -0.57% Gold: -0.85% Silver: -1.92% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/sqkI5pXajb
  • Forex Update: As of 11:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.31% 🇨🇦CAD: 0.28% 🇬🇧GBP: 0.18% 🇯🇵JPY: 0.10% 🇨🇭CHF: 0.10% 🇦🇺AUD: -0.04% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/JtkOOLrtBz
  • Heads Up:🇧🇷 BCB Focus Market Readout due at 11:30 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-11-30
  • Indices Update: As of 11:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.20% FTSE 100: 0.11% France 40: -0.39% US 500: -0.45% Wall Street: -0.60% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/Z8IqQDxEvC
  • Dividend investing is the practice of investing in dividend-paying stocks. Why should you invest in dividend stocks? Find out: https://t.co/v8jRlj0OvP https://t.co/84CzBgWQLg
  • Heads Up:💶 ECB President Lagarde Speech due at 10:30 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-11-30
  • 🇮🇹 Inflation Rate YoY Prel (NOV) Actual: -0.2% Previous: -0.3% https://www.dailyfx.com/economic-calendar#2020-11-30
S&P 500: Short-term Chart Weakening, Nasdaq 100 Could Be the Better Short

S&P 500: Short-term Chart Weakening, Nasdaq 100 Could Be the Better Short

2016-06-09 10:43:00
Paul Robinson, Strategist
Share:

What’s inside:

  • Short-term technical structure weakening
  • Rising wedge breaking, looking for an undercut of prior higher low for confirmation
  • The Nasdaq 100 may be the better way to go from the short-side

Yesterday, we went over some ‘macro-tech’ developments, discussing signs of fracturing market health in the face of the current rally as the S&P 500 reaches towards record highs. You can read the commentary here for further details. It's broader-based analysis, but could soon apply given short-term developments beginning to unfold.

Looking at the short-term: The recent grind higher continued through yesterday, with higher lows and higher highs carving themselves out on the intra-day time-frame. However, one of those higher lows could soon come under fire just beneath the 2108 level with the rising wedge in place since the 5/29 peak triggering to the down-side.

For shorts to become more attractive we would like to see a break of the most recent higher low as well as the 2105 level which kept a lid on the market twice in the past couple of weeks. This would clear a path for a potential move back towards the important 2085 level which previously held so well as support.

Conversely, if support levels hold then so does our 'excitement' over establishing short positions. More of the same upward grind could continue in that case...

SPX500 Hourly

S&P 500: Short-term Chart Weakening, Nasdaq 100 Could Be the Better Short

If a break lower begins to take shape the better index to short at this time may be the Nasdaq 100. The following chart posted on Twitter yesterday clearly shows the market divergence along with trend-line resistance. Trading relative strength is an age-old strategy for trading related markets; buy the stronger index and short the weaker one.

NDX 100 w/SPX

S&P 500: Short-term Chart Weakening, Nasdaq 100 Could Be the Better Short

Whether you are a newbie or experienced trader, there is always room for improvement. Check out our guide, "Traits of Successful Traders" to see where you may be able to improve.

---Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at @PaulRobinsonFX.

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

DISCLOSURES