I told you friends there is a rising channel forming in S&P 500 and the future charts (Daily) for today shows it has been broken. Such patterns are generally continuing patterns of previous larger trend, which is Bear Trend for both the S&P 500 and Dow Jones Industrial Average of US.
Following are my observations:
1. The support line of latest uptrend has been breached and it needs to close above 1280 for S&P 500 Futures today to be in uptrend.
2. The EMA sequence is still bearish and today S&P 500 futures are trading well below the 34 period EMA, which is below 55 period EMA.
3. The RSI is above 50, which means it is still not in technical oversold zone.
4. The ADX is indicating somewhat oversold situation so a small bounce back is also possible.
My conclusion is the US markets have finished their up frenzy and now it is an all new leg of downside. However, I will wait for today's closing and see if there is any sign of it going in upward direction.
hi
ReplyDeletegood work.