DJIA - Expecting a pullback
US market has been rally from end of December 2018 and currently the index is at its significant resistance level. Im expecting a gloomy performance this week :
1)Current index forming a shooting and testing its trendline
2)Current index at Fibonacci 61.8% area as well.
3)Index at Moving Average 100 & 200 area
Index has crossed above the 2 lines last Friday but with the index movement, it seems a weak breakout with the lines. It may cross back below the lines soon.
MA 100 is seen testing the MA 200 line and last seen MA 100 cross down the MA 200 was August 2015. Will MA100 rebound from MA200 line this week? Or cross down? Lets monitor.
4)VIX Index - at a strong line. This line has been tested a few times before.
5)Relative Sentiment Index. This is an indicator that I developed to identify overall market sentiment. Yes US market is indeed in a good sentiment. However the upward move has reached the Overbought level. And Im expecting a reversal in sentiment. You can refer to the link below :
scontent.fkul16-1.fna.fbcdn.net/v/t1.0-9/51356379_1490220761111947_2205194346167271424_o.jpg?_nc_cat=105&_nc_ht=scontent.fkul16-1.fna&oh=4c825087616f23889462ecff41947400&oe=5CF06A5F
The above analysis is purely from Technical Analysis point of view. We don’t know what will happen next but lets just be cautious. :)
1)Current index forming a shooting and testing its trendline
2)Current index at Fibonacci 61.8% area as well.
3)Index at Moving Average 100 & 200 area
Index has crossed above the 2 lines last Friday but with the index movement, it seems a weak breakout with the lines. It may cross back below the lines soon.
MA 100 is seen testing the MA 200 line and last seen MA 100 cross down the MA 200 was August 2015. Will MA100 rebound from MA200 line this week? Or cross down? Lets monitor.
4)VIX Index - at a strong line. This line has been tested a few times before.
5)Relative Sentiment Index. This is an indicator that I developed to identify overall market sentiment. Yes US market is indeed in a good sentiment. However the upward move has reached the Overbought level. And Im expecting a reversal in sentiment. You can refer to the link below :
scontent.fkul16-1.fna.fbcdn.net/v/t1.0-9/51356379_1490220761111947_2205194346167271424_o.jpg?_nc_cat=105&_nc_ht=scontent.fkul16-1.fna&oh=4c825087616f23889462ecff41947400&oe=5CF06A5F
The above analysis is purely from Technical Analysis point of view. We don’t know what will happen next but lets just be cautious. :)
Penafian
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