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Yes, Give it to me

4 Reasons Why I’m Bearish on The S&P 500 

 September 1, 2015

By  Rayner

Amid the recent volatility across equity markets, I’d thought I’ll share my views on the S&P 500.

I can’t predict where the markets will go, but I can control my actions according to the different market scenarios.

snp3

4 Reasons Why I’m Bearish on the The S&P 500

1.  The 200 day moving average is pointing lower. This signals a shift in the longer term trend.

2. Price is below the 20, 50, 100 and 200 day moving average. This is bearish across short, intermediate and longer term time frames.

3. Over the last 9 days, selling occurs on higher volume and buying occurs on lighter volume.

4. Price re tested the previous support turned resistance. This could be a turning point where the bears regain control.

When will my bias change?

1. 1800 is a significant support where the bulls will attempt to regain control. If it holds up, you can expect price to re test 1980 – 2000 resistance area.

2. If price breaks above 1980 – 2000 area, I’ll change my bias from bearish to neutral.

Trading plan

1. If you’re a position trader, you can look to short with stops above the resistance area.

snp position

2. If you’re a day trader, you can zoom into the 15 mins chart and look for trading opportunities.

Rejection of higher prices at resistance area are shorting opportunities.

snp intra day

This is not trading advice. Kindly do your due diligence before risking your hard earned money.

As always, comments are welcomed and encouraged. Cheers!

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  • Hi Rayner,

    I’m also bearish on the SP-500 and look for stocks that are in downtrend in the last year.

    Thanks for sharing your view 🙂

  • Great Analysis Raynor, it certainly doesn’t look pretty at the moment and until we break the recent low and really flush the last of the supply out of there we may not see prices turn in any meaningful way. Keep up the great work!

    • Hello Peter,

      Great to see you here!

      Yes I agree with you, taking out the last swing low would trigger stops from those who went long.

      Thank you for your kind words, hope to hear more from you in future 🙂

      Rayner

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