There are price and technical indicators' pattern match between Aug 2016 and Jan 2017 for sp500.
- Both price are consolidation in high level
- The BB width keeps narrow when consolidation
- MACD value line cross down signal line and runs below it.
In late Aug 2016, when BB start to expand, sp500 index start to runs down. Can it happen to Jan 2017? It is very very possible. Only one thing can save the bull is that the MACD back up to have golden cross happen. So the trading should be more short than long (high probability goes with short, lower probability to go with long). Remember another MACD golden cross strike back can still save the bull.
http://schrts.co/33R1vG
The weekly chart showed MACD and PMO still positive trade flow. Even there is a sell off, the bigger sell off has to be come with MACD or PMO death cross on weekly chart. When the weekly sell is triggered, it does not mean there is no daily rally, it means to short the rip/rally.
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