George Davis, CMT, Featured On The Technical Analyst, Talks Sentiment

George Davis, CMT, who is a Managing Director and Chief Technical Analyst of Fixed Income and Currency Strategy at RBC Capital Markets in Toronto, was featured in The Technical Analyst late last week discussing a possible key support level of the S&P 500 amid shifting sentiment. 

Davis pointed out that the recent S&P selloff has taken it below the 55, 100 and 200-day moving averages and below the long-term ascending channel from late 2015 (see chart above). Moreover, selling intensity increased dramatically after the 200-day moving average was pierced (see lower pane above), confirming a major change in sentiment.

Davis also presented two other charts illustrating the possible magnitude of the ongoing market correction, and discussed the possibility of it mirroring the 2015-2016 consolidation period. A repeat of that consolidation would point to a period of consolidation between 2500-2900, Davis said.

Read the full article and view the other charts here: Limits to S&P correction?