The antitrust case against AAPL, FB, AMZN, GOOG and two scenarios for S&P500. Weekly piece.

The antitrust case against AAPL, FB, AMZN, GOOG and two scenarios for S&P500. Weekly piece.

Japanese Yen 
The currency still looks solid. I will look for a complex buying signal preferably with a stop loss run. 


Canadian Dollar.
The target for the current move: 0.7590-0.7620. It has more room to the upside. But considering that the last bar (Friday) was a large range with a big volume that looks like a good area to take profits. 


S&P500 
Now we have to put into our risk assessment a probable antitrust case against some of the biggest companies. If you check in the past, you will see that the market doesn’t like such situations. We’ll see how this develops.

Back to the present S&P E-minis reached our target zone 2730 – 2706 (see Standing on the shoulders of giants. Weekly Piece) and bounced back making five consecutive up days. Now mark this bottom at 2728.75. The market should not go below it. 
Current breadth data shows that the attack of the all-time highs is highly probable. That is supported by the lack of stopping volume. However, the market is overbought and with those five consecutive days; it is not wise to buy now. 
In the case of no tweets and lack of new fundamental input, I am working on two scenarios. See the chart below: 



The first one consists of a drop in the volatility, a continuation of the current up move and attack of the all-time highs with small daily bars. That will make it hard to find a good buy in the index. Best here will be to look for a single stock. 

The second one – few down days toward 2800 where will wait for the magic in search for a buy signal. 

Let's find your missing piece!

Vassil Banov,
Founder of Piece of Trading

Trades mentioned here are either taken or will be taken by the author if the right conditions appear. They are NOT recommendations nor any of this constitute investment advice. Please read the Risk Disclaimer

Charts made with TradeStation.

TAGS: Japanese Yen, Apple, Google, Facebook, Amazon, Canadian Dollar, S&P500, Support & Resistance

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