A sell-off may continue on the S&P500, Nasdaq 100 and UK100

2015年9月17日

On the S&P 500 and NASDAQ100 indices, closing as a high test bar in the resistance zone, and a bearish engulfing bar on the FTSE100 (UK100) stock index, a sell setup is in order suggesting potential bearish continuation on these three (CFD) indices, following the recent sell off on major indices.

1. S&P 500

The rejection/resistance zone on the S&P 500 comprises the following:

- retest of the 50 ema;
- retest of ~2011; and
- 50% retracement, and close below.

Oscillator convergence, as shown on the chart, is seen as an additional argument to enter a potential continuation of seller based momentum in this index.

entry - below high test bar
stop loss - above high bar
target - previous low or lower

2. NAS100

Since the major global indices demonstrate price behaviour correlation, an almost exact set up as on the S&P 500 is also forming on the NAS100.

entry - below high test bar
stop loss - above high test bar
target - previous low or lower



3. UK100

The FTSE100 is in a very clear down trending environment. Three key reasons of a potential continued price decline are:

- close as a bearish engulfing bar;
- a strong bout of resistance at ~6250; and
- rejection of the 20 ema.

entry - below low of bearish enguling bar
stop loss - above high of bearish engulfing bar
target - at previous low or lower