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There are some incredibly important points on this graph
1.) Note that 92 (line 1) provided incredibly strong resistance to an upside move. As prices moved higher, the average volume also increased. Granted this was weaker volume because of end of the year trading, but an increase in volume should not be overlooked. But -- prices fell.
2.) Since being rebuffed at 92 prices have continued to move lower on increasing volume. Now prices are approaching line 2, another important technical level
3.) Prices have moved below all the SMAs
4.) The only good thing about this chart is the SMAs are bunched together in a tight range.
2 comments:
My prediction is that we're going to see a double bottom formation in the next few weeks.
In other words I'll probably be wrong in a few weeks.. as though I'm not wrong much of the rest of the time anyhow :)
I call the current market phase an "Awning".
When you're falling off a building, you usually fall continuously to the bottom, unless you bounce off an awning.
The market is still collapsing, but we have paused to bounce off an awning. We've stopped falling, risen a little, topped out, and turned down again.
The precipitous collapse will resume shortly.
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