Technicals | Feb 15 2022
By Michael Gable
Our best-case scenario for the past few weeks has been for the S&P/ASX 200 Index to base under 7200. It is surprising to see it pop above 7200 already but the move doesn't appear to be sustainable. Either way, whether we base just above or just below 7200, the market needs to use up a bit more time here and track sideways a bit before making the next move – if that move is to be bullish.
The US markets, however, look weaker than ours, and that is always a risk for our own market. Despite the choppiness of the past couple of weeks, the S&P 500 Index does look as though the path of least resistance is to the downside. It can still go either way, but the odds for now slightly favour a bit more downside.
In today's report we have a chart of the S&P 500 Index to show you the key levels.
Over the past few weeks, we have seen some strong support get established around 4300. However, the S&P 500 has put in a little double top (arrows). This is another "lower high" since the January peak. Risk is still to the downside and there is a better than even chance that we are back near 4300 to test that level again. Clearly, a strong bounce from there would need to occur for the bulls to remain in control. A decline under that level would very much be a negative and suggest that we would need to brace for deeper levels.
Content included in this article is not by association the view of FNArena (see our disclaimer).
Michael Gable is managing Director of Fairmont Equities (www.fairmontequities.com)
Fairmont Equities is a share advisory firm assisting Private Clients with the professional management of their share portfolio. We are based in the Sydney CBD but provide services to private clients across Australia. We believe that the concepts of fundamental analysis and technical analysis of stocks are not mutually exclusive. Regardless of whether you are a trader or long term investor, combining both methods is crucial to success. As a result, the unique analysis of Fairmont Equities is featured regularly in the media such as Sky News Business, CNBC, The Australian Financial Review, and the ASX newsletter. Contact us for a free trial of our research and information on our portfolio management services.
Michael is RG146 Accredited and holds the following formal qualifications:
• Bachelor of Engineering, Hons. (University of Sydney)
• Bachelor of Commerce (University of Sydney)
• Diploma of Mortgage Lending (Finsia)
• Diploma of Financial Services [Financial Planning] (Finsia)
• Completion of ASX Accredited Derivatives Adviser Levels 1 & 2
.jpg)
Disclaimer
Fairmont Equities Australia (ACN 615 592 802) is a holder of an Australian Financial Services License (No. 494022). The information contained in this report is general information only and is copy write to Fairmont Equities. Fairmont Equities reserves all intellectual property rights. This report should not be interpreted as one that provides personal financial or investment advice. Any examples presented are for illustration purposes only. Past performance is not a reliable indicator of future performance. No person, persons or organisation should invest monies or take action on the reliance of the material contained in this report, but instead should satisfy themselves independently (whether by expert advice or others) of the appropriateness of any such action. Fairmont Equities, it directors and/or officers accept no responsibility for the accuracy, completeness or timeliness of the information contained in the report.
Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" – Warning this story contains unashamedly positive feedback on the service provided.
FNArena is proud about its track record and past achievements: Ten Years On
