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.
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.