But FDX lays an egg last night. If parts, packages, products and paperwork are not shipping, that tells you the entire globe is in a large economic slowdown. FDX cites the slowdown in manufacturing as hampering the business. This news is very ominous for markets moving forward. Shipping is one of the key business indicators. In early trading today, FDX is down over 2% and UPS is hit about one and one-half percent. The chart must be watched closely over the coming weeks to see if the 20 crosses down thru the 50, if so, think long and hard about any long position held. The markets will be headed into a cyclical bear that may last a few months, or years.
Note the white rising wedge, overbot conditions and negative divergence (red lines) that spanked price down. The M Top is further bad news for bullish traders. Also, note how the MACD was never happy about the bottom placed last summer and prefers to see price come down to retest the same levels again. Price also closed under the 50-week MA yesterday, more bearish news. Watch the 20 and 50 MA cross, it is a big deal if it occurs, and if so, think long and hard about any long positions in your portfolio, since surely they will all begin bleeding steadily going forward. U.S. futures are lower this morning the FDX news no doubt causing damage. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
I thought the Bot was short from 1399 yesterday??
ReplyDeleteMarkets are fast-moving John, Keybot flipped back to the long side at SPX 1402 in the afternoon, a rare occurrence for the algo, that type of behavior only happening to the algo two other times in the last five years. SPX keeps stumbling sideways these days, Draghi is only about 23 hours away now where the story will be told.
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