Market Week 41
The market was volatile lately. We were under EMA(200) for a brief moment then it reversed to get back to EMA(50) and EMA(20) cross. Which means a more controlled fall. A nice candle formed under the EMA(50).
We will see today if the redline can hold back the next wave. Now it looks like it can. Yesterday’s end of day selloff suggested differently. Today should continue to the south side however this would be a too easy play. This could induce panic easily.
Dow Jones INDUstrial Average
The former lines are still working. Another bearish signal on the chart which is the falling candle (Evening doji star) under EMA(50) and EMA(20) almost cross. No matter how it is called it shows weakness.
This could narrow between the trendline and the moving averages. The easy play would be to short this fall under 26000. The stop would be the former high.
Still Nasdaq Composite the weakest of all. It closed under the EMA(200) yesterday. Understandably the most sensitive to the trade war. If China puts some US companies into burden this will fall hard. The falling still not accelerating hope is priced in.
The market looks weak. Important support levels could fall. There are more short setups than long on the daily charts. Former shiny highs are farther away.