Free Stock Market Analysis – Monday 29th October 2018

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Hello and hope you all had a fantastic weekend? Getting ready for the new week?

DOW JONES, S&P 500 and NASDAQ 100 INDICIES

Lots of volatility last week, we had a lot of selling early last week and the selling day on Wednesday causing the rally on Thursday while on Friday we referred to as the end of the bearish move though no guarantees but we have reached our target support at 24500points

signifying the possible end of the move, if we experience more sell off then the target will be 24,000 points which is unlikely because the pre-market market data is up some points this morning.

This week in my opinion is considered as a bullish week or maybe a bullish day and a decline followed by rally back up.

The spinning top candlestick reflects the bottom but the oscillators have not caught up with the possible change to the bullish because the Stochastic is oversold which is the kind of scenario we expected and the market is doing what we expect it to do.

ADX is very high 69.04. No guarantees but pay attention to what you see in the candlesticks and the support and resistance which we discussed previously here.

 

 

S&P 500 is doing a similar thing, with a huge spinning top (this indicate a lot of indecision) setting up nice for the end of this move and the same thing is happened with the NASDAQ even though it is a bullish candlestick.

Either Monday or latest Wednesday we will see some bullish moves with extremely volatility.

VOLATILITY INDEX (VIX)

This is pretty high but notice that the current bottom is a lower VIX.

Two weeks ago when we had the first sell off was higher than the current selloff. This a good sign that the volatility is weaning and the fear is disappearing with a possible option process move and surprise you a little.

See soon and happy trading week.

5 Replies to “Free Stock Market Analysis – Monday 29th October 2018”

  1. Well I think most of us with be happy with just a little simple sideways stability this week…because last week was a complete nightmare (thank god I didn’t have leverage on my MU stocks!). 

    I’ve noticed that the market frequently falls off in the month of October – why is this? 

    1. Hi Chris

      Last week I mentioned seasonality which shows that Octoberseems to be a sell month and Nov Dec a bullish month. I just put it down to corrective market moves while people take profit …

      Thanks for you comment and enjoy the trading week.

  2. I was looking to get into stocks recently and came across your website, this informed helped me a lot, definitely going to look back at the stock market analysis once I get more into it,
    Thanks!

  3. This is great! I’ve been looking into stocks lately, and this helps me substantially. I’m happy to see the volatility is slowing down, it’s really helpful to see that in the graph. I’m bookmarking your page, thank you.

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