Macro Morning: S&Power

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By Chris Becker

As Asia wakes up Monday morning, the mood is more cautious than ebullient, notwithstanding some solid gains on the US markets on Friday night – up around 0.7% or so across the board. Q4 earnings and a subsiding Ebola panic has sent the S&P500 almost back to its former trend line on the daily charts:

Chart SP500, D1, 2014.10.26 22:00 UTC, VantageFX Pty Ltd., MetaTrader 4, Real

That’s a mighty rebound and shows how a simple oversold indicator can provide you with opportunity to get back in – see the extreme reading of CCI in the lower chart. Risk is not out of the woods yet of course, with this week spelling the end of QE3 and uncertainty on the other side.

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