Morning Preview: Have Stocks Finally Topped? - Forex News by Strategia Forex

Morning Preview: Have Stocks Finally Topped?

Posted Wednesday, October 4, 2017 by
Rowan Crosby • 1 min read

Morning Everyone,

The US stock indexes have been making new records on an almost daily basis. However, I would call it more of a melt-up, rather than a rally. At the same time volatility is getting crushed and everyone is waiting for the point at which we finally get a sell-off.

Are we finally ready for a stock market correction?

I’ve been watching the S&P 500 (SPX) closely and in particular the 2540 level. Here we have a resistance level which is the upper trendline. There's no doubt we are severely overbought judging by most technical oscillators, and we must be getting close to a pullback. I’m getting set to position myself bearishly from 2540.

 

SPX

SPX – 240 min Chart.

 

Key Levels

Support

Resistance

2500

2538

2496

2540 (MAJOR)

2490

2560

 
 

Top Economic Data for the Week

Thursday

AUD – Retail Sales

EUR – ECB Minutes

 

Friday

USD – Non-Farm Payrolls

CAD – Employment

CAD – Ivey PMI

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About the author

Rowan Crosby // Asia-Pacific Analyst
Rowan Crosby is a professional futures trader from Sydney, Australia. Rowan has extensive experience trading commodities, bonds and equity futures in the Asian, European and US markets. Rowan holds a Bachelor of Finance and Economics degree and is focused heavily on Investment Finance and Quantitative Analysis.
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