Good Morning to all. I haven’t been posting too much cause i am busy with some stuff that i am working on other than investmentmoats.com.
Recent market movements have recovered somewhat last week, but alot of the major indices in France, Germany, US and all are all showing potential signs of the death cross which is when the 50 day ma cross the 200 day ma. Its a long term bearish signal but we are not there yet.
S&P 500 ETF
for me, its still a bull market unless the key support at the bottom of the green box gets taken out. Friday’s action with increased volume have not helped either. I also dun like the look of both charts testing the 200 day ma and failing it.
If we form lower peaks we would have established a bearish trend or it might go non-directional. Thing is we might not know if this is what they call WAVE C in elliiot wave which is a big drawdown but really your portfolio should take a certain defensive stance.
If you are in the money, you gotta ask yourself what does the price action tells you, is this likely to be a break in the trend? If it is, you might want to consider taking some of the winnings off the table.
I hold mostly defensive counters so to me these charts just indicates the direction of the mkt. I rely on the 200day ma for many of my stocks as places i cut just to preserve capital from big drawdowns.