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Notice the following on the weekly chart:
-- Prices are approaching a three year low
-- All the SMAs are moving lower
-- The shorter SMAs are below the longer SMAs
-- Prices are below all the SMAs
BUT
-- The RSI is oversold, and
-- The MACD is approaching an oversold reading
Click on the image for a larger picture
Notice the following on the daily chart:
-- Prices have been dropping for the last four and a half months
-- All the SMAs are moving lower
-- The shorter SMAs are below the longer SMAs
-- Prices are below all the SMAs
BUT
-- The MACD s rising, and
-- The RSI is giving an oversold reading
Bottom line: I would expect this market to rally over the next few weeks. But, this would be a bear market rally.
