FXstreet.com (San Francisco) - At present, the S&P 500 Index is trading down around 4 points, or 0.3% to 1,337.75. As Dmytro Bondar, analyst at RBS observes: “The S&P-500 future appears to be breaking out from a bearish wedge pattern, which could trigger a sharp move down to the 1,250 and 1,180 targets.”
The analyst elaborates: “Momentum readings add to concerns, as the slow stochastic oscillator a) lies in the overbought region, b) formed a negative divergence, and c) formed a bearish crossover. Additionally, seasonal patterns and my statistical model incorporating trends and cycles suggest a high likelihood of a sell-off starting the next week.”
The analyst elaborates: “Momentum readings add to concerns, as the slow stochastic oscillator a) lies in the overbought region, b) formed a negative divergence, and c) formed a bearish crossover. Additionally, seasonal patterns and my statistical model incorporating trends and cycles suggest a high likelihood of a sell-off starting the next week.”
