Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Dino's Bar & Grill -- Ignore unavailable to you. Want to Upgrade?

To: Goose94 who wrote (81535)	4/4/2020 7:29:44 AM
From: Goose94	Read Replies (1) \| Respond to of 203031

HUV-T: Indexes are Trying to Stabilize Major U.S. indexes continue to probe for a short-term bottom. The daily bars in Chart 1 show the *S&P 500* regaining some lost ground over the last two weeks after falling to the lowest level in three years. But there's still a lot of overhead resistance to deal with. The SPX remains well below its red *200-day average. And its blue 50-day average* has just slipped below its red 200-day line. In addition, the flat red trendlines overlaid on the price bars show the SPX meeting some selling at its *38% Fibonacci retracement line. That's usually the first line of resistance after a market selloff. The 14-day RSI line* in the upper box also remains below potential resistance at its midpoint line at 50. Longer-range charts also remain a big concern. When studying major market trends, longer-range charts are usually more important than daily charts. That's because the longer-range charts are better at determining the major direction of stock prices. And right now those longer-range charts aren't very encouraging. Chart 2 plots a *weekly chart of the S&P 500* over the last six years. There's some good and bad news on the chart. The *14-week RSI line* in the upper box is deeply oversold. In addition, the SPX has managed to climb back above broken support formed near the end of 2018 (green trendline). While that's mildly encouraging, it's not enough to restore the potential technical damage done during March to the market's long-term uptrend. In addition, its *weekly MACD lines* (middle box) remain in a steep downtrend. And the blue circle shows its 10-week average falling below its *red 40-week line* for the first time in more than a year. All of which suggests there's a lot more healing that needs to be done for stocks to regain upward momentum. John Murphy