Market Overview

Friday's Market Minute: Bulls Trample Mid-Week Dip

Share:
Friday's Market Minute: Bulls Trample Mid-Week Dip

Tuesday evening’s 1.6% drop in the S&P 500 futures contract may not have even registered with some traders. News of the U.S. airstrike that killed Iran’s top general sent the /ES tumbling 54.25 points down to 3181, but aggressive dip-buying quickly erased the downward spike before the cash open and by Thursday had propelled markets into the 3,280 handle.

Examining technical indicators, the RSI is showing bearish divergence in the overbought area while markets are making all-time highs, while the declining ADX suggests a weakening uptrend. In terms of market breadth, the Advance/Decline lines for both the NYSE and the NASDAQ have been flattening and actually fell yesterday – yet, in spite of all this, rising prices continue to thwart bears and squeeze out shorts.

There are many ways to make a bearish technical argument for this market, but the most important thing to keep in mind is that, at this time, the trend is still upward. It can be tempting to jump the gun and start preemptively loading up on short positions, but wait for clear signs of trend reversal first.

Image Sourced from Pixabay

Posted-In: Earnings News Guidance Emerging Market ETFs Futures Markets ETFs General Best of Benzinga

 

Related Articles

View Comments and Join the Discussion!
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com