Signs of life from Tencent's Q3 earnings?
Like many Chinese stocks, Tencent has declined significantly over the past few months. Did its Q3 earnings beat provide investors with reason to suspect the bottom is in?
Summary: A technical look at the S&P 500 index charts as well as the Futures market heading into today's New York bell.
Short-term and intraday
We see an interesting symmetrical triangle pattern on the Future/CFD US500.I intraday (one-hour) chart, so watch this for a potential breakout.
If it breaks to the upside, it could place 2,793 in view, while a downside break could clear a path to a new test of 2,700.
Daily chart: Bearish RSI divergence has been unwound by a close below 40; now we could potentially wait for bullish divergence. However, often we see a rebound and turn in the stock market without bullish divergence since the market is per its nature biased long. Bearish divergences will always result in a correction/downturn, which we also witnessed last week.