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Last week volatility picked up and S&P 500 had a relatively sharp reaction broke below the immediate support area (4415, 4470). Big spread bearish bars were accompanied by increasing supply.

I noticed a few news headlines talked about why "this time is different" using fundamental to justify (e.g. delta variance, tapering by FED will happen sooner than expected, etc...) or technical analysis (e.g. market breadth divergence) plus a lot of other highlights as shown in the news headlines. 

The fundamental events are certainly important and make a lot of sense, but they are likely not for timing the market but for reference on hindsight if people would like to study and find out the "reasons or catalysts" after it happens.

Divergence of market breadth is certainly one of the conditions I pay attention to when analyzing the broad market. Notice that I mentioned condition rather than confirmation/signal. 

In general, the divergence could last for some time so might not suitable not for timing the market but as a condition to take into consideration when analyzing.

S&P 500 oversold condition

On 19 Aug (before US session open), I shared my view on S&P 500 futures (ES) in my private Telegram Group above.

Though I have a bullish bias but I need to seek for confirmation for both price and volume. So far, S&P 500 did have a bullish reversal and is likely to challenge or even break all time high again to test 4500.

S&P 500 to challenge all time high?

Red Flags

Having said that, I am preparing myself to watch out for more pronounced correction or consolidation because of quite a number of the signs that are bad for the market including the market breadth and a few others.

I discussed one of it (belongs to intermarket relationship) in my Weekly live session on Sunday earlier on.

Anyway, short term direction is still up until proven otherwise with plenty of trading opportunities.

Further Reading

TA, FA or Hybrid? Results Inside

3 Stocks Ready For Big Move This Week — RMBS, SKY, DHI (Trading The Earnings Announcements)

If you are day trading the US futures (especially $SP500指数主连 2109(ESmain)$ ) or swing trading for Malaysia and US stocks, feel free to check out my YouTube Channel: Ming Jong Tey for additional videos and resources. $NQ100指数主连 2109(NQmain)$ $道琼斯指数主连 2109(YMmain)$