SPOOKY OCTOBER!! Why i think we will see new lows! 1. So looking back on the chart when the MFI has hit over bought it has been a good time to short the market, in a downtrend when things become over bought it usually represents a good shorting opportunity
2. If you go back on our last leg down we hit a wave 4 @ the 38% fib level with a descending wedge breakout then dropped to new lows to wave 5 before rallying
3. We had obvious divergences on the MFI( started trending down as prices moved up) also on the tsv( your volume was decreasing)
4. I don't expect earnings to be any good this week and the market will react in a negative way, after earnings are done we should be priced in for the rest of the year, that being said i think november will be our rally month
This is just my opinion, now there is a bullish scenario to this, if we can manage to hold 19.50 support we can maybe see higher highs but as for now i see a lot of resistances,
Please if u have a different opinion i would love to hear it,
thanks
Happy trading and god bless
