Equity Indices Monthly (Nov ’16)
US Equities are attempting to regain higher levels, with prices bouncing back into consolidation beneath critical resistance at the 2193.81 high of August.
A break cannot be ruled out, as the Tension Indicator continues to strengthen, but falling momentum studies and bearish background readings are expected to limit scope, with investors to adopt a sell-into-strength strategy.
In the coming months, downside risks should increase, with a break below the 2074~ low of July targeting the 2050 retracement. A close below congestion around 2000 would add fresh selling pressure, as trendline support from 2011 then attracts.
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