Saturday, 23 April 2016

Swing Trading Oscillator Is Overbought

The swing trading oscillator is overbought, so combined with the bearish expanding triangle the marker should correct. The only question is... how far does the market drop? If the stock market has lower lows, then that's an indication this market has the potential to tag the 1600 area on the S&P 500.

More often than not, the price will tag previous resistance which is 1600 so that this market can propel itself higher just like it did in 1927... the stock market is no different today than it was almost 100 years ago, the patterns are always the same. The BS is probably the same too. 

 ... the price should find support at 1830 first (the ascending channel support line). Alternatively, a bearish pattern can fail. If the bearish pattern fails we'll have to turn bullish... 

Note... the price is on the extended support line from the  peak July and November 2015

The Russell 2000 is pushing up against resistance on this weekly chart. Is it going to have enough buying power to push through?

Dow Jones Industrial Average Forecast April 22 weekly chart with bearish hammer candlestick  - bearish expanding triangle - below resistance and a cross over on the Stochastic Oscillator. 

The Trend Wizard Timing Tool still doesn't have a crossover yet, but is still overbought. 

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