Market Pulse on August 7th

Olivier Rigot, EMC Gestion de Fortune

1 minute de lecture

S&P 500 2883,98 +2,21.

The stock market sold off sharply at the opening after an agressive tweet from Mr Trump to the attention of the US central bank. The market recovered rapidly thereafter after bargain hunters steeped into the market. Hedging activity in the option market was intense with heavy buying of puts; our indicators measuring daily sentiment are approaching the green zone. Breadth closed almost square after a depressed opening. The weekly investment survey among private investors improved from one week to the other and the bear to bull ratio stands at less than 50%, historically a buying signal. In summary, our indicators improved rapidly after these last few days rout and, ideally, some more backing and filling may provide over the next few days a good entry point. The systematic models haven’t provided yet a turnaround signal, meaning that traders using these systems are still short.

 

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