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Commodity
by Seth Parker on December 10th, 2018

SP500 Analysis – We do have a breakout!

Global stocks start the new week on the back foot. Maybe it is all about the new global tensions between China and US (Huawei, Apple, Qualcomm, South China Sea etc) or maybe just a typical technical movement, I do not know. All I know is that we were right in our previous piece and that we currently have a new sell signal. First, let’s see what we wrote in our previous piece about the SP500 (23rd of November)

„History just loves to repeat itself, so no surprise that in this case we follow the path from the beginning of the year. In my opinion, the scenario of the SP500 reaching the yellow horizontal support is still on the table. „

sp500 chart

Well, we are currently just 40 points from the yellow support mentioned above. The sell signal that we talked about in the first paragraph comes from the breakout of the green horizontal support. That support was a part of the sideways trend that locked the price from the middle of October (orange, green). Breakout the the downside is a technical invitation to sell. Price coming back above will mean a false breakout and will be a technical invitation to buy but chances for that are limited. Where is the Stock Santa by the way?

By Seth Parker

Seth is a professional trader with over 10 years of experience. He specializes in the technical analysis. His main focus is on the pure Price Action. In his trading, Seth used the trends, supports and resistances and technical formations. Always, the most important thing in his strategy is the money management. Seth reached a proficiency in trading and for the past three years is doing that for a living enjoying the sun and lovely beaches of the Spanish coast.

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