Note: Click-on inside the chart to enlarge it.
The $INDU's 15-week EMA has declined below its 40-week EMA. The implication is that the bull trend that started in August 2009 is now finished and a new bearish trend has started as of August 21, 2015. It has been quite a ride over the past six years. How far down will this new "Bear" carry the market? In all honesty, I don't know. I simply follow the market's signal, as based on my "Exponential Moving Average Strategy." Simply look at the above chart and notice that since 2006, we have had three buy signals and three sell signal, which overall have been significant at identifying the trend (Bull/Bear) with the exception from July-September 2011.
Currently, the market is very oversold, as based on several momentum indicators that I follow, such as Full Stochastics, PPO, Wm%R, and CCI. Therefore, the market is definitely due for a relief rally. Next week? We will find out come Monday morning when the our markets open up.
Since the sun is about to set in this part of the country for a Friday, I will say Shabbat Shalom.
No comments:
Post a Comment