Ernest’s market outlook (6 Jan 2017)

Dear readers,

Two weeks ago, I mentioned that although Hang Seng is in a downtrend, it may rebound as oversold pressures build. Hang Seng jumped 928 points in the past two weeks. What lies ahead?

S&P500 Index

Just to recap what I have mentioned on 23 Dec 2016 (see HERE), I wrote “S&P500 is consolidating its gains for the past two weeks. It continues to be on a clear uptrend amid rising exponential moving averages (“EMAs”). ADX continues to rise from 36 on 9 Dec 2016 to 39 on 23 Dec 2016 on the backdrop of positive placed directional indicators (“DIs”). My personal view is that S&P500 may trade within the range of 2,241 – 2,300 in the next one week. A sustained break below 2,241 with volume expansion has an eventual measured technical target of 2,212.”

–> For the past two weeks, there was only one …

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