More Caution Warranted?
FNArena has added another video to its Investors Education section on the website. In this week's video, ATW's Jerry Simmons seems to take a more cautious approach as price action in crude oil and US equities last week moved towards the upper levels of recent trading ranges. He advises it's probably best to await Break-Outs and confirmations of them.
Simmons also observes the S&P500 is putting a "wedge" on price charts, which is usually a pattern that occurs at the end of a movement, not at the beginning of it. Were the S&P500 to break-out below 1336 this would confirm the current upswing is running into exhaustion, he warns. To confirm the reversal in underlying trend, the index has to fall below 1336 first, then 1326 and then 1315, he explains.
For the Nasdaq, alarm bells should start ringing when the index falls below 2400. A few other markets are being analysed too.
To view the ATW Strategic Prep Video click HERE or visit the FNArena Investors Education section of the website.
Here's the direct link: www.fnarena.com/index2.cfm?type=dsp_front_videos&vid=68
All views expressed are Jerry Simmons's, not FNArena's (see our disclaimer).
Jerry Simmons has over 25 years of full-time trading experience. He is the senior partner and head mentor for the "Masters" Programme within the education system at New York based Advanced Trading Workshop (ATW).