In the week ahead the U.S. equity market, broadly represented by the S&P 500 index, will be looking for direction as the level reaches its 200 day moving average (MA), which had served as firm support before dropping below that level on May 22, 2010 for the first time since mid July 2009. By our analysis, markets are now undergoing a sentiment shift, in turn morphing the 200 day MA into a resistance; twice tested but not yet broken since crossing below on May 22.

Elliot Wave International chief market analyst Steve Hochberg applies Elliot Wave market timing theory to the current market dynamics. Indicators of sentiment including the S&P 500 put/call ratio, insider trading, and a crashing CBOE Volatility Index are cited as evidence for an eminent sell-off in riskier assets globally.

Click below to see Steve make his case on CNBC’s Squawk Box…

Nadar Naeimi, a strategist for AMR Capital Investors Limited of Australia, chimes in as he adds his two cents to the discussion on when this rally in equities will end. AMR Capital, with the help of Naeimi, manages assets for some of Australia’s largest pension funds, with total assets under management close to $90 billion.

Click below to see this crucial report!

The VIX is the CBOE (Chicago Board Options Exchange) metric of volatility regarding S&P 500 futures (SPX).Currently, the VIX is trading near it’s lowest levels since 2008, allowing bear traders and bull hedgers an attractive entry point for some risk or insurance in their portfolios.

The last week has seen 100 day moving averages torn apart, surprises from economic data reports, and one of the most notable sell-offs for stocks in some time. Recently, many home gamers and pros alike, have put financials out of their purview. The erratic and effectively risky nature of these names are less than inviting, but
[continue reading...]

Bernanke and the crew will get started bright and early behind the collasal locked mohagany doors of the FOMC board room Tuesday morning, while traders will ernestly focus on the information at hand. A slew of earnings from Ashland (ASH) (0.71 EPS est.), Corning (GLW) (0.42 EPS est.), Delta Airlines (DAL) (-0.24 EPS est), DuPont (DD)
[continue reading...]

The United States is bubbling with populist outrage over the recession, deemed to be caused by financial institutions, and the essentially ineffective response provided by the government and monetary policy makers. The House of Representatives has voted on an amendment to the Barney Frank Financial regulation bill, which enforce a financial audit of the Federal Reserve 180 days after
[continue reading...]

The S&P 500 rally from the March 9, 2009 low has caught many off guard and left more wondering if now is the time to buy stocks. The smart money has already made their profits in the past eight months and reports from the FT now cite hedge funds beginning to take profits. In a
[continue reading...]