A look at the chart reveals a very bearish chart.
-- Prices are below all the SMAs
-- The shorter SMAs are below the longer SMAs
-- All the SMAs are moving lower
BUT, also note
-- Today was a high volume day, with a
-- The candle is an upside down hammer
However, by all technical indicators the market is extremely oversold right now.
The MACD is the lowest its been in three months, as is
The relative strength index.
Stochastics are also scraping the bottom.
In other words, don't be surprised to see a relief rally over the next few days.
1 comment:
I wonder whether the arguably oversold condition -- which I agree by traditional & historical indicators signals a rally ahead -- is relevant in the rush to liquidity we're seeing these days. The market seems to rally intra-day but then often rolls off a hill -- or cliff -- at the close. It appears that many are selling on any advances whatever. Perhaps we are at a point where the more reliable technical indicators are breaking down due to the very real differences, as yet not understood, between now and the recent past.
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