A technical view on the S&P500 and NK225 taking this week’s pivots into account. Based on pivot theory, bears have a WM3 – WM1 swing setup at market open which indicates risk off as we head into the week. Bulls will be paying careful attention to their prices at WPP and WM2. So risk off as we head into the end of Feb, a rally as we head into March and then Yen repatriation as we head into April?

Next up Gold.

S&P500 Daily

Bulls have not broke above the bearish 61.8% fib so bears still have a shot at a lower high. Pivot theory tells us that with price coming up from the profit taking zone for Feb, price is headed up to MPP though it certainly is possible for price to come down and make a higher low.

S&P500 H4

A texbook swing setup of WM3 to WM1 is available for bears at the open - the overbought H4 stoch having crossed and moving down towards the trade zone supports this analysis. Bulls would be paying attention to WPP/ MS1 and WM2 for opportunities to go long and take price up to WM4/ WR2. Note the confluence of MM1 and WS1 and the confluence of MPP and WR1. If price comes up off WS1 the target would be WR1 - while these pivots are used in ranging markets it is still worth noting. If support does not hold and price heads down to the weekly bearish target then it is possible price triple bottoms.

Nikkei Daily

Price is just below the 38.2% bearish fib though has broken above MS2. Coming up off the monthly target price is expected to move up to MPP though could come back down and double bottom as well.

Nikkei H4

The same with S&P500, bears have a textbook weekly swing with price opening at WM3 and bears having a weekly target of WM1. This would produce the double bottom I mentioned on the daily chart. Of course, bulls would be looking for their opportunity to buy at WPP and WM2 with a target of WR2 and WM4 respectively. Note that H4 is overbought and while the stoch has not crossed down into the trade zone it is still overbought at a significant level of resistance.

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