Thanksgiving bull market called off?
Kim Cramer Larsson
Technical Analyst, Saxo Bank
Maybe the Thanksgiving week will not be so joyful on the Stock market this year.
Yesterday the US Stock market started out bright only for Sellers to take control shortly after the opening bell. Buyers tried to lift Nasdaq 100 above the upper rising trend line but couldn’t hold it.
A big bearish Engulfing candle yesterday formed under heavy volume on Nasdaq 100 taking out the previous two day’s of positive trading closing below Thursday open.
We now have RSI divergence confirmed on RSI and MACD which indicates further sell-offs can be seen next few days.
To reverse the correction picture a close above yesterdays’ high is needed.
Support at 15.950 can be tested.
S&P 500 peaked within few cents from the upper rising trend line the possible target I mentioned yesterday at 4.755. We should expect more selling pressure. Support at 4.630. A close below could fuel further sell-offs down to around 4.551