Next Key Levels
It is no surprise for risk appetite to rally in April. After all, April is the 2nd best month for US equity indices as an average of the past 25 years. The charts below show the next threshold resistance for risk appetite. Notably, US100 faces a confluence of 200-DMA and trendline resistance around 24380-24440. SPX faces its 200-DMA at 6644. Gold needs to save 4640s, while silver is capped at a wedge resistance at 74.00.
Here is a test for gold traders during the Asia Session, which has worked more than 4x over the past 4 weeks. Full Video here
Read More...The S&P500 index, the most widely followed index in the world (in terms of benchmarks) has now fallen exactly 10% from its record high. Major markets such as S&P500, EURUSD, XAUUSD, oil etc are widely scrutinized when their drawdowns reach high profile figures such as 10%,15% and 20%. At these points, algos and automated buy programs are alerted and even triggered. Similar action when these markets reach high profile moving averages such as 55, 100 and 200. In today's case, today's SPX 10% decline coincides with the 55-DMA. Note in the drawdown charts below, what happened when SPX drawdown reached the 10% level. The most likely scenario (according to multi-year cycle averages), indices will have a positive April before resuming fresh downside ahead.
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