TRENDING:

XAU/USD

EUR/USD

Overbought, overextended – What's the buzz in S&P 500 now? [Video]

Ming Jong Tey Independent Analyst

Watch the video extracted from the WLGC session before the market open on 13 Feb 2024 below to find out the following:

The key support level for the Nasdaq 100
The directional bias for the long-term, swing and immediate term.
The red flags you need to be aware of in this current market.
and a lot more...

Market update 14 Feb 2024

A sharp selloff happened after the live session as the market reacted to the CPI data.

The magnitude and supply are slightly less than 31 Jan 2023. So far yesterday’s drop in S&P 500 (ES) did not pose a great concern yet. 4850 is a meaningful support that needs to hold.

Meanwhile, Russell 2000 (RTY) had a more severe drop, as shown below:

RTY failed at the key level - 2000 twice.

If it breaks below the support at 1925, the major indices like S&P 500, Nasdaq 100, and Dow Jones are likely to join the sell-off as Russell 2000 leads the way down.

A commitment above 2000 is the key to broadening market breadth and the bullish momentum will return.

We will get more clues in the next few days.

The bearish analogue in S&P 500 discussed in the tweet below is still valid and could be unfolding accordingly.

"This is like a topping formation. We have seen it right here. Although this probably like a megaphone type of the formation rather than a rectangle.

In terms of the overbought condition analog. There's a chance for it to follow this kind of the pullback." $ES $SPX #SP500 pic.twitter.com/fVEZuen9iQ
— Ming Jong Tey (@MingJong) February 7, 2024

Market environment

The bullish vs. bearish setup is 812 to 27 from the screenshot of my stock screener below.

9 “low-hanging fruits” (NFLX, CYTK, etc…) trade entries setup + 12 actionable setups (AMD etc…) plus 11 “wait and hold” candidates have been discussed during the live session before the market open (BMO).

CYTK

NFLX

AMD

Author

Ming Jong Tey

Independent Analyst

Ming Jong Tey has been trading since 2008. He started his learning journey from technical analysis (indicators, Fibonacci, etc...) to value investing. Throughout his journey, he develops an interest in price action with chart pattern trading.

GBP/USD drifts lower below 1.3250 on steady BoE rate path, traders await US jobs data

The GBP/USD pair loses traction to around 1.3240 during the Asian trading hours on Tuesday. A potential rate hike from the US Federal Reserve provides some support to the US Dollar against the British Pound. The US ADP employment data and the US Nonfarm Payrolls data will take center stage later this week.

EUR/USD softens to near 1.1400 as ECB tightening bets fade

The EUR/USD pair trades with mild losses around 1.1415 during the early Asian session on Tuesday. The Euro softens against the US Dollar as traders reduce their bets on the European Central Bank rate hikes this year.

Gold crashes with Japanese Yen as stops likely triggered

Gold is down nearly 1.50% so far in Tuesday’s Asian trading, sitting at a fresh seven-month low as the key $3,950 psychological barrier gave way amid a renewed wave of selling.

Solana, Zcash, and Hyperliquid rebound while Bitcoin remains below $60,000

The broader cryptocurrency market remains under pressure with Bitcoin below $60,000 on Tuesday, while Solana, Zcash and Hyperliquid emerge as top performers over the last 24 hours. Retail sentiment remains bearish with the Fear and Greed Index around 17 on Tuesday, during early Asian hours, maintaining an “Extreme Fear” signal.

Just like Fed, is BoJ’s independence under threat?

When talking about central bank independence, most of the focus has been on Donald Trump’s pressure on the Federal Reserve. But a similar story, a quieter one for now, seems to be happening on the other side of the Pacific: Japan’s government may be testing the Bank of Japan’s independence.

Kevin Warsh isn't expected to say much in Sintra: That's exactly why markets will listen

Financial markets could find an important catalyst in the enchanting, fairytale-like landscape of Sintra this week. The ECB Forum will, as it does every year, gather the crème de la crème of central banks. The new boss at the Fed, who has clearly said that the Fed should stop explaining everything, will need to talk – and traders should listen.