As noted in the chart provided, the downtrend persist but that can change sooner than later. The chart shows that November 1st will be a key day, for the reason I will explain below.
The weekly DJI chart shows a bear market trend with oversold Relative Strength Index (RSI) and near to support levels. Also, as noted in the chart weak hands have not been washed...
There are further signs of bullish trend development in the VIX.
Prices are now trading above congestion around 15.00 as momentum studies post positive divergence and continue to strengthen. The proprietary Tension Indicator (not shown) is also improving.
In the coming months, expectations are for higher levels to attract, with focus turning to congestion around...
The VIX remains under pressure, within the November bear trend, with the close below the July 2014 trendline putting pressure on the 10.28 year low of July 2014.
Falling studies anticipate extension to psychological support at 10.00, with potential for further losses to the 9.70 year low of February 2007. Still lower is the 9.39 year low of December 2006, but...
US Equities remain at elevated levels, with focus on the 2300 psychological barrier and (150%) projection of the 2015-2016 fall.
Extension towards the 2332, (161.8%) retracement cannot be ruled out as the Tension Indicator, not shown, continues to strengthen, but overbought stochastics and weakening background readings are expected to make gains progressively...
The pop higher in the SPX has reached the 2225, (76.4%) projection of the Feb-Jun rally.
Next resistance is likely to be around 2250, but any break should fade beneath the 2300~, (100%) projection.
The sharp rejection of the October highs is attempting to stabilise above USD113.00.
Consolidation is highlighted in the coming week or so, but the fall in momentum studies and deterioration in sentiment are likely to keep prices under pressure into the beginning of 2017Q1.
Also, from a relative perspective, Facebook is also underperforming the US Technology...
