As this central banker drama plays out, the daily chart indicators line up with neggie d (red lines) so a smack down is on tap. However, watch that sneaky RSI on the verge of the overbot level (tiny purple circle). If the RSI pokes above the 70% level that will delay the market top by a day or three. If the RSI remains flat as is compared to the prior high about a week prior, then the bears will be all systems go for downside. Watch the MACD cross since a negative cross will confirm the beginning of a selloff in stocks. The dark red rising wedge is ominous.
Price tagged the upper standard deviation line so a move back to the middle band at 2022 and rising is in play. If the RSI pokes higher as mentioned then price will seek the upper band more substantively at 2074 before rolling over. Stocks are long overdue for a pull back and have been stick-saved over the last three weeks by a Draghi pump, then a Yellen pump, then positive seasonality around the Easter holiday, then another Yellen pump on Tuesday. The central bankers are sick; they have created a Frankenstein market. They realize this but they no longer know what to do except pretend that they know what they are doing.
S&P futures were down -4 but are now +1 about 90 minutes ahead of the opening bell. Watch the RSI to see if the top occurs today or if it will be delayed until Monday. 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.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.