Technical Analysis

Rising Long Bets, Bearish Technical Signs Worrying

Dow Jones, S&P 500, technical analysis, retailer positioning – call points

  • Shares in Wall Street can sales pressure be seen, is the loss expanding?
  • Retailer bets on Dow Jones and S&P 500 hint prices are at stake
  • The indexes confirmed bearish candlestick patterns, leaving them vulnerable

In this week’s IG Customer Assessment (IGCS) session, a tool to assess retailer positioning, I discussed the prospects for Dow Jones and the S&P 500. IGCS is usually a controversial indicator. For a detailed analysis, see the recording of the session above, where I discussed how to use IGCS in my trading strategy. I also addressed the main prospects for US benchmark stock indices.

Outlook for Dow Jones Sentiment – Bearish

The IGCS gauge means that about 43% of retailers have Dow Jones network lengths. The fact that traders are short, suggests the Dow may continue to rise. However, elevated exposure has increased by 65.55% and 25.66% daily and weekly, respectively. Rchanges in attitudes warn that the current price trend may soon reverse, despite the fact that traders will remain network-short.

Dow Jones, S & P 500 outlook: rise in long stakes, worrying technical signs

Technical analysis

Dow Jones confirmed the closure under a Falling star candlestick pattern, suggesting that there may still be losses ahead. A break between the 20-day Simple Moving Average (SMA) would reveal growing support from March 2020 onwards. This may restore the dominant rise. Continuing the uptrend may eventually open the door to testing a 78.6% Fibonacci extension at 35290.

Dow Jones, S & P 500 outlook: rise in long stakes, worrying technical signs

The chart is created in the trading view

S&P 500 Sentiment Outlook – Cart

The IGCS gauge means that about 44% of retailers have S&P 500 net lengths. In fact, traders are short hints that prices may continue to rise. However, the rise has increased by 18.36% and 6.71%, respectively, compared to yesterday and last week. RThe average change in attitudes warns that the current price trend may soon turn lower, despite the fact that traders remain net short.

S&P 500 futures daily chart

S&P 500 futures daily chart

Technical analysis

The S&P 500 has left a Bear gripping candlestick pattern, later confirming its proximity. This has opened the door to widening recent losses, given that prices have also taken a 20-day SMA. It will focus on increasing support from March 2020, which may restore the dominant focus. Continuing the upward trend, the focus is on the 100% Fibonacci expansion level 4320.

S&P 500 futures daily chart

Dow Jones, S & P 500 outlook: rise in long stakes, worrying technical signs

The chart is created in the trading view

* IG customer mood charts and positioning data used from May 11thth Report

– Written by Daniel Dubrovsky Strategist to DailyFX.com

Use the or comments section below to contact Daniel @ddrovrovskyFX Twitter

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