By Carol Harmer
•
30 May, 2019
•
S&P up slightly from last nights close pre open...we had quite a good recovery off the 2766 lows and therefore
we have a really good chance of filling that opening gap eft from yesterday and this is up at 2801/02..Also if we
open here we are going to be trading above the DP @ 2780..
That 200 day M/A was clipped yesterday, but we soon climbed back above here and the close above here I think
is quite significant...Now the medium/long term view remains the same...I think we are on rocky ground on ral-
lies...but there needs to be a shift in momentum in traders minds....Since 2009 everyone has made money buy-
ing dips...It is hard to get out of a 10 year cycle mindset...but where you look back historically on the S&P given
how far we have travelled since 2016 a substantial move lower still cannot be ruled out...Remember the yearly
lows are at 2444 on 3rd Jan....This is 100 pts higher than the lows of Dec @ 2346....so you can see what we are
up against...The last 18 months in S&P have been up and down...Now if you look at this on the monthly charts,
change of trend markets have this typical wild ranges....we certainly have seen that since Jan 2018...We have
made new ATHs, but not sustainable...However I think also that short term we would play this from the long
side....at east trying to get it back to 2800/2 gaps..
This will be the decider...we stay below here, we go lower...we break above we are looking at 2821 to possibly
2832 before sellers come bac into the market....