Neutral Stance
Admittedly I've been a bear for awhile, but I'm turning more and more neutral for the long term now. indicators are telling me a correction is coming in the short term. Bearish divergence on the macd, RSI is overbought, volume is dropping more and more, inclining wedge. The question is how big of a correction do we see?
The one indicator that changed my bearish stance? The Advance/Decline. It's continuing to rally to higher highs. When the market dropped in 07', the A/D went down with it, the market popped to new highs one last time before a bear market began, the A/D did NOT reach new highs when the market did though.
I do think we start with a correction down to 280, see little to no bounce, and then test the long-term teal trend line. From there is where things get interesting. A strong bounce from there with further advance in the A/D and we could be heading for long term higher highs. All of this back from in early 2018 is just an ABC flat correction.
Or we could retest this teal trendline, see little to no bounce, almost like 10/5-10/8/18 and see further acceleration to the downside in which the market has finally come to terms with itself, that we aren't reaching new highs for quite some time.
Key Levels to Watch :
280
270
The one indicator that changed my bearish stance? The Advance/Decline. It's continuing to rally to higher highs. When the market dropped in 07', the A/D went down with it, the market popped to new highs one last time before a bear market began, the A/D did NOT reach new highs when the market did though.
I do think we start with a correction down to 280, see little to no bounce, and then test the long-term teal trend line. From there is where things get interesting. A strong bounce from there with further advance in the A/D and we could be heading for long term higher highs. All of this back from in early 2018 is just an ABC flat correction.
Or we could retest this teal trendline, see little to no bounce, almost like 10/5-10/8/18 and see further acceleration to the downside in which the market has finally come to terms with itself, that we aren't reaching new highs for quite some time.
Key Levels to Watch :
280
270
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