S&P500 chart as of 20 Mar 18

Markets – whipsawed by multiple events (20 Mar 18)

Our markets have been whipsawed by multiple events, such as rising inflation expectations and bond yields, protectionism (for e.g. Trade tariffs), upcoming FOMC meeting and sudden key personnel changes in the White House etc… How should we react or trade in current market conditions? Let’s take a look at the market events and the indices’ charts…   5 observations on the market Fed Chairman Jerome Powell’s first FOMC meeting tonight. A 25bps rate hike is almost certainly expected but markets will be scrutinising what the new Fed Chairman will be saying during the conference; Based on an article on Washington […]

STI chart as of 10 Mar 17

Ernest’s market outlook (10 Mar 17)

Dear all, S&P500 has dropped 28 points, or 1.2% from its intraday high of 2,401 on 1 Mar 2017. Is a correction coming?   S&P500 Just to recap what I have mentioned on 24 Feb 2017 (see HERE), I wrote “S&P500 continues to be entrenched in an uptrend, as evidenced by its rising exponential moving averages (“EMAs”). ADX started to rise from 18 on 10 Feb 2017 to 34 on 24 Feb 2017, indicative of a trend. RSI closed at 80 on 24 Feb 2017. It is noteworthy that RSI only crosses above 80 on a couple of trading sessions […]