Don’t worry about why the major moving averages work. We could stay up all night discussing it and still not arrive at absolute answers.
Often the markets are so deceptively simple that traders over-think things.
Just know that when the market is vacillating around the 50 day and 200 day moving averages, they have to be respected.
We are now looking at the 50 day average, currently at 108.42, for support. If this level holds, I believe the market will make another attempt at breaking above the 200 day moving average over the next 3-5 days.
I’ll be OK with a move to 1080.
it’s all going down, keeping things simple, the trend has changed, lower highs and lower lows. And in the awful macro picture, there’s no way we’re over 1000 in mid-August, I’d think 880-920ish is dead ahead.
Get short!
We do not have lower lows. The intermediate and long-term trends are both still up.
“Often the markets are so deceptively simple that traders over-think things.” Indeud.
gonna drop like a rock.look at the setup shedder. member i was sayin last week about the cup n handle.now you got it. from your first circle to the 3rd. circle is your cup. in red even, any formation of a handle is also riddled in red. hell, uncle jed, i think i’ve just seen my first “red” cup. shedder, that dont smell to good……or look that good either. what you think?
I do not see a cup with handle. If IBD is saying cup with handle, then I encourage you to cancel your subscription.
Cup with handles are typically bullish, except when the price breaks above the left handle of the cup, and then fails.
If there is a cup with handle, and I don’t think there is one, (it is all wrong) we are in the handle formation right now.
I’m not sure how you could really be more than neutral here. We are above the 50 but below the 200. The 20 day average is heading up and getting ready to cross above the 50 day. So I’m not seeing much on either the bullish or bearish side to get excited about. If the 50 day holds, you’ve got to look for another assault on the 200 day average.