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Spxshort

S&P 500 Short: Fundamental and TechnicalThe S&P 500 index is breaking all time highs every week. However, it looks set for a fall. Fundamental: The US economy is strong. NFP was healthy, and whilst GDP missed on expectations, the FOMC's last statement was hawkish. In the medium term, the Federal Reserve should raise interest rates, which should put pressure on the global stock market. Technical: The weekly and monthly charts are showing strong divergence. On the weekly chart, the S&P 500 has been outside an 800-period BB for months. On the monthly chart, there is strong divergence which historically points to a long overdue, deep correction in the stock market. In the short term, the index may test 2200. However, in the medium to long term, it is due for a correction, perhaps to the 1900 level (a missed monthly pivot). Furthermore, a break below 1800 (recent support from January 2016) should open the doors for a further decline.
FX:SPX500Short
by Exercise-Discipline
4
S&P 500 MEDIUM TERM SHORT - Fundamental and TechnicalTVC:SPX The S&P 500 composite index reached 2129.79 today, just a point away from its all time high at 2130.82. This should provide a good place to short the S&P, because: Fundamentally: the outlook for the US economy is strong, with good job growth - however , the Federal Reserve should now look to increase interest rates slowly, which should gradually weigh on the stock market. Years of cheap borrowing will come to an end, with an inevitable crash in overvalued junk bonds. Coupled with the risks of Brexit and low oil prices in the medium term, stocks remain overvalued. Technically: SPX will face strong resistance at 2130. It has been rejected from 2130 in July 2015 - exactly when the Federal Reserve was contemplating raising interest rates. Below 2130-2135, SPX500 is bearish and may fall to 1800 in the medium term if the current economic climate persists.
FX:SPX500Short
by Exercise-Discipline
2