We have a Gap open at 7700 from 28/06 to 01/07.
The rally was sold and the dip bought resulting in mild net gains yesterday.
The overnight rally has been sold into and there is scope for further bearish pressure going into this morning.
Although the bulls are in control, the stalling positive momentum indicates a possible turnaround is possible.
Ok guys, I have been watching the U.S equities for a while now and I have proposed a price method that we very well might see play out.
If you have any comments or ideas your self leave me a comment down below.
First, note how price backed off and failed to touch the higher trendline in August.
Next, the market provided another clue, as the next rally showed bearish divergence on the Stoch RSI.
Though prices bounced from a fairly critical trendline, the last week as confirmed the down direction as price as sold at the 20EMA.
It is fair to assume that more downside...
The NASDAQ continues to progress in a channel within a fork structure. Nothing is bearish here.
The upper portion of the fork was re-captured in May, and price has held there ever since. Should the rising channel break, I expect the mid line of the fork to hold as support, as it has done previously. A break of that line would only imply a retest of the lower...
The story of the NASDAQ is the story of a lot of global equities at this point. The SPX and DE30EUR come to mind.
This, among others, is what makes me doubtful of new DJIA highs. I've singled out the NASDAQ because the bearish divergence is the clearest.
I favor shorting the NASDAQ on intraday rallies because of this clarity. A break of green support to the...