S&P 500 Chart Foretells A Bearish October…

1
Commodity Trading Research
SP 500 Chart Foretells A Bearish October
2
Welcome to Commodity Trading Research Your
premier site for fundamental and technical
analysis for profitable Commodity Trading. For
more info on Commodity Trading Research visit our
website www.CommodityTradingResearch.com
3

• Get Your Free Report on the BEST Commodity
  Stocks!
• Well tell you about this
• Special Offer
• at the end of the video!

4

• Hi, My name is Justin and Im with Commodity
  Trading Research, today were reviewing our
  recently published article

5

• Does This SP 500 Chart Foretell Another Stock
  Downturn?

6

• Last weeks Federal Reserve meeting did little to
  soothe stock market anxiety
• In fact, major indices dropped sharply last
  Friday as investors tried to decipher the US
  central banks Thursday decision to keep interest
  rates at 0.

7

• Making matters worse, stocks traded sideways in a
  volatile fashion yesterday as indecision ruled
  the day.
• Why are stocks acting so poorly?

8

• Much of the recent equity bearishness has to do
  with the looming onset of higher interest rates.
  According to Fed Chairwoman Janet Yellen, the US
  economy is doing welland higher rates coming soon.

9

• However, the Fed chose not to raise rates in
  September since theresstill adistinct risk of a
  US slowdown due to global economic weakness. Of
  course, most of the global weakness worriesstem
  from China.

10

• Recent economic data from the worlds second
  largest economy reveals a sharp slowdown in
  manufacturing and export activity.

11

• While these fundamental factors are certainty
  having an impact on market sentiment, itsa
  technical development that really has me sitting
  up in my chair

12
(No Transcript)
13

• As you can see, investors made a valiant attempt
  to rally the SP 500 above 2,000 last week- an
  important psychological level.

14

• But it didnt work

15

• The closely watched market index reversed sharply
  lower by the end of last week, leaving a
  foreboding reversal bar on the weekly chart.

16

• Heres the deal- should the SP 500 break below
  1,950 in coming days (the low of last weeks bar)
  theres a very good chance the index retests the
  1,875 area (red line)last seen in August.

17

• And get this
• If data arrives supporting the idea Chinas
  economy is actually worse off than expected, a
  test of the October 2014 lows at 1,825 (green
  line) isnt out of the question.

18

• As a result, we could be on the cusp of a 7-8
  downturn in the SP 500.
• And remember, were smack dab in the middle of a
  historically bearish period for the markets.

19

• September and October are typically the weakest
  months of the year for stocks.

20

• What would such a bearish move in the SP 500 do
  for gold?

21

• As Ive mentioned before, gold is typically seen
  as a flight to safety asset in times of extreme
  market uncertainty. While the metal saw firm
  upside as stocks plummeted in August,

22

• the yellow metal has failed to impress the past
  few weeks.
• But that may soon change

23
(No Transcript)
24

• Notice how gold has failedto make a new low in
  September. When a market fails to set a new low
  after a long downtrend its a good sign selling
  momentum is waning.

25

• You also notice how the metal is on the verge of
  breaking above an important downtrend line near
  1,150 an ounce.

26

• Should gold rally above this technical resistance
  level, a rush to higher prices may ensue as short
  sellers buy back their positions.

27

• Bottom line

28

• The past few days have been highly indecisive and
  volatile in the SP 500. But if the index breaks
  below 1,950 in coming days theres a very good
  chance of another sharp downturn in stocks.

29

• Such a situation may provide the bullish
  environment needed to push gold above technical
  resistance at 1,150 and onto higher prices.
  Remember, there are some great options for
  trading the yellow metal via gold ETFs.

30

• Want More from Commodity Trading Research.com?
• Follow us on Social Media

31

• Want more FREE information on Commodity Trading?
• Commodity Trading Research.com

Get Your FREE Report Now
32
READ THIS FREE REPORT!
The 3 BEST Commodity Stocks for 2015 Trading
Success!
Click Here