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Stocks Could Retest Deeper Supports as Technicals Start to Weaken

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When fear rises, blog traffic climbs, but when traders get complacent, readership falls. The good news is that markets have lots of workable support.

Starting with the (), markets eased back to their 20-day MA on relatively modest volume (although technical distribution). There was a ’sell’ trigger in On-Balance-Volume to add to the ’sell’ trigger in the MAIWM-Daily Chart

The had a repeat of Friday with a return to the 20-day MA. The MACD is holding to the May ’swing’ signal as stochastics are starting to ease out of an overbought state.

Note, to have a solid, reliable breakout you need overbought stochatics, and we won’t want to see an undercut of the 20-day MA as this would have us looking at the 50-day MA rather than the February high.SPX-Daily Chart

The is doing better than peer indices as it enjoys more solid technicals. It still has a working MACD trigger ’sell’, but other technicals – including momentum – are strong.Nasdaq Composite-Daily Chart

is drifting across its base as yesterday’s losses suggest there isn’t the demand to get the cryptocurrency out of its trading range. It will probably need a fresh catalyst, like a test of the 200-day MA, to get things going.BTC/USD-Daily Chart

We haven’t seen any significant change in markets for the past few days, but the longer this continues, the bigger reaction we will see when markets do make their move.





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