Day Hagan Tech Talk



The recent technical deterioration has spilled over into the Large Cap arena. Consequently, the odds look to favor the S&P 500 retesting the lower end of a trading band, currently in the area of 2300.


Art Huprich, CMT


March 22, 2017


Bottom Line: I like to watch the price trends of global equity markets in order to see if they can confirm or refute the non-trading price trend of the U.S. equity market.  While there are currently enough bullish and/or improving international equity market price trends in order to confirm the bullish non-trading trend of the U.S. equity market, the recent technical deterioration that had developed over the past two to four weeks—please refer to Tech Talk reports dated 3/14/17, 3/7/17 and 2/28/17—has spilled over into the Large Cap arena. Consequently, the odds look to favor the S&P 500 retesting the lower end of a trading band, currently in the area of 2300—second chart below.

Despite many international markets' short-term overbought condition, a number of international markets are outperforming the U.S. year to date. Consistent with Day Hagan's continual quest to overweight areas exhibiting fundamental, economic and technical strength, we own a number of the areas shown below.

International and US Performance Year To Date

While the near-term uptrend line at approximately 2339 may provide a "reason" for the S&P 500 to bounce, given the short-term technical deterioration that has developed I think the odds favor that the lower support levels get worked over. Stay tuned and please continue to tighten stops.

S&P 500: Support line and 3 percent OB/OS Trading Bands drawn around the 21-day moving average. The 3 percent Overbought/oversold brands provide guidance in terms of "OB resistance" (red circle) and "OS Support" (green circle). Trend line support - 2339, better support between 2300 and 2267.

Please know that Day Hagan Asset Management appreciates your support and hard work!

Art Huprich, CMT
Chief Market Technician
Day Hagan Asset Management

— Written 03.21.2017. Chart sources:

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