S&P 500 Outlook-November 7, 2017 - Forex News by FX Leaders

S&P 500 Outlook-November 7, 2017

Posted Tuesday, November 7, 2017 by
Shain Vernier • 2 min read

Today’s U.S. equities markets have shown moderate weakness, with the S&P 500 and DJIA both in the red for the session. A negative number on the tote board has not been commonplace among U.S. indices as of late. Will it become a normal part of the daily routine as 2017 comes to a close?

We will certainly find out.

 

S&P 500 Technical Outlook

From just about every perspective, the S&P 500 has been booming for the past year. Most analysts attribute the rally to an optimistic sentiment among investors regarding the potential for tax cuts and a pro-business President. The ongoing technical outlook hasn’t hurt much either.

E-minisDecember E-mini S&P Futures, Daily Chart

 

The daily timeframe remains bullish, as it has since the Summer months. However, there are a few elements that signal changing winds:

  • The Bollinger MP and Daily SMA have become intertwined in a “weave” pattern. Frequent crossovers on the daily timeframe are rare. This is a signal that we may be in for prolonged horizontal price action.

 

  • Today’s candlestick has formed almost entirely outside of the upper Bollinger Band. This is an extremely bullish signal. But, if we get a close in negative territory for the session, it will become a signal of a possible correction.

Overview: Attempting to call a top in a hard-charging bull market is a sure-fire way to go broke. That is one advantage of being an active trader: we don’t have to be “right” to make money. All we have to do is get in and out of the market efficiently.

Moving forward, I will be paying attention to where the December E-Mini S&P 500 Futures contract closes. If we see a red number on the board when this afternoon bell rings, the table will be set to take a short trade tomorrow.

Check back during Wednesday’s pre-U.S. session for ideas on how to engage the S&P 500 and take a few ticks from the market.

 
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About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
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