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

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Related Articles
Japanese stock markets have started to recover, following the closing of the day. Bullish recovery was backed by the Paper & Pulp, Railway..
3 years ago
Comments
0 0 vote
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments