Our take on the US equity market right now...

2017년 8월 18일

The US equity market came under considerable pressure on Thursday. The H4 trendline support etched from the low 21273, alongside August’s opening level at 21913, was engulfed as a result of this. Traders may have also noticed that daily action closed below a channel support line extended from the low 20494. With that being said, however, the daily candles are now seen loitering just ahead of an AB=CD (black arrows) 127.2% Fib ext. point at 21683, and a converging 50% support line at 21680 drawn from the low 21192.

If you’re in the process of considering whether or not it’s worth taking a long from the daily AB=CD 127.2% completion point, you may want to look at the weekly timeframe. A fresh demand is seen lurking just below current price at 21462-21645. Of particular interest is the top edge of this area being positioned just above the daily support level at 21541 (converges with daily AB=CD 161.8% Fib ext. point) and a few points below the AB=CD completion 127.2% point!

Our suggestions: Personally, a long from the daily support mentioned above at 21541 seems the most logical, in our opinion. The level, as mentioned above, fuses with a daily AB=CD 161.8% ext. point and is positioned within the noted weekly demand. Further adding to this, the trend in this market is incredibly strong, and by trading long from 21541, we can place stops below the consolidation of candles seen marked with a green circle on the daily chart at 21459.

Data points to consider: US Prelim UoM consumer sentiment at 9pm, followed closely by FOMC member Kaplan speaking at 3.15pm GMT+1.