Might Retrace A Bit Here

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The channel resistance break at the open yesterday was a significant break, and there’s no short term reason to think that we are making a sizeable turn here. There is quite a lot of short term negative divergence here though and that might deliver a modest retracement. Double trendline support is currently in the 2356/7 area and if SPX can break below there is a possible gap fill target at 2351.16 or we could see another test of the current price floor in the 2340 area, a strong match with the ES weekly pivot at 2337.75. SPX 60min chart:

170222 SPX 60min

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Let’s Just Get These Out of the Way

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The IPO of Snap, Inc. (the makers of SnapChat, who are making a big point of describing themselves as “a camera company“) is hotly-anticipated. There’s no exact date set yet, but I guess it’ll come out in March, and all eyes will be upon it, since it’s always a good litmus test to see how the public markets are doing when a money-losing behemoth comes out.

Twitter, as we all know, soared at first, and it’s been a complete train wreck ever since. Facebook, on the other hand, flopped at first, but it’s been a blue chip since then.

As Facebook was doing poorly, lots of obvious jabs were used, such as “Faceplant”. Should SNAP ever encounter a period of weakness (if you can imagine such a thing), I’d expect some really predictable headlines will include…….

  • SNAP turns to CRAP
  • “Oh, Snap!”
  • Price “snaps” lower

I’m sure there are plenty others. Anyway, it’s about as predictable as the next major U.S. elections, when God-knows-how-many campaigns will try to play off the “2020 Vision” theme.

Incidentally, I forgot how funny this item from The Onion was until I re-read it this morning. Enjoy.