Trade alert

In our last ‘Insights’ we wrote the following:

“Equities: Short-term: Positive

While expecting equities to be lower over the next year or two, we do expect a continued rally from current levels. 

On the S&P, we expect the 50wma or 200dma to be tested for resistance. So, we expect another 5% move higher from current levels. Similarly, we would expect the MSCI World to test its 50wma. This is on the basis that the market is still very modestly oversold.”

https://www.mwcmgroup.com/mwcm-clarifying-the-outlook-for-2019/

The market has indeed moved strongly higher the last few weeks and the S&P500 now at its 50wma and 200dma – see the charts below. 

Similarly,  the MSCI World (as reflected by the tracker fund URTH) is also close to its 200dma.

As we commented in our Insights a week or two back, this could be an appropriate time for those short-term traders who added at the market low in December, to cut back. 

While trading using technicals is an art not a science, the market has had a very strong bounce already since the late December lows and the 200dma may give resistance.