Day Hagan Tech Talk

DAY HAGAN TECH TALK

SUMMARY

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.

WRITTEN BY

Art Huprich, CMT

POSTED

March 22, 2017

SHARE

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: Stockcharts.com.

Disclosure: The data and analysis contained herein are provided "as is" and without warranty of any kind, either expressed or implied. Day Hagan Asset Management (DHAM), any of its affiliates or employees, or any third party data provider, shall not have any liability for any loss sustained by anyone who has relied on the information contained in any Day Hagan Asset Management literature or marketing materials. All opinions expressed herein are subject to change without notice, and you should always obtain current information and perform due diligence before investing. DHAM accounts that DHAM or its affiliated companies manage, or their respective shareholders, directors, officers and/or employees, may have long or short positions in the securities discussed herein and may purchase or sell such securities without notice. DHAM uses and has historically used various methods to evaluate investments which, at times, produce contradictory recommendations with respect to the same securities. When evaluating the results of prior DHAM recommendations or DHAM performance rankings, one should also consider that DHAM may modify the methods it uses to evaluate investment opportunities from time to time, that model results do not impute or show the compounded adverse effect of transactions costs or management fees or reflect actual investment results, that some model results do not reflect actual historical recommendations, and that investment models are necessarily constructed with the benefit of hindsight. For this and for many other reasons, the performance of DHAM's past recommendations and model results are not a guarantee of future results. The securities mentioned in this document may not be eligible for sale in some states or countries, nor be suitable for all types of investors; their value and income they produce may fluctuate and/or be adversely affected by exchange rates, interest rates or other factors.

Investment advisory services offered through Day Hagan Asset Management, an SEC registered investment advisory firm. Accounts held at Raymond James and Associates, Inc. (member NYSE, SIPC). None of the entities listed here in this disclosure are affiliated.

Day Hagan Asset Management and Mutual Funds ©   |  Disclosures  |  Site Design by Lee Towle Designs