This is my post from my weekly outlook thread. Comments are welcome.
One more chart, this is again monthly chart of S&P500 this time, clear divergence between MFI and price (MFI of course isn't just based on price performance, but volume as well). MACD histogram is negative to the extent that will not instill confidence, quite the opposite (bearish sentiment). And of course multi-year trend line has been violated on strong volume.
I believe my outlook to have strong technical validity, as this is a macro chart and all fundamentals are reflected in price performance on this time frame.
The only index that has so far prevented from downside acceleration is NDX, which is above it's 20MMA. Once it breaks it and the key zone that I monitor on all other indexes it would take months to get indexes back to ATH.
One more chart, this is again monthly chart of S&P500 this time, clear divergence between MFI and price (MFI of course isn't just based on price performance, but volume as well). MACD histogram is negative to the extent that will not instill confidence, quite the opposite (bearish sentiment). And of course multi-year trend line has been violated on strong volume.
I believe my outlook to have strong technical validity, as this is a macro chart and all fundamentals are reflected in price performance on this time frame.
The only index that has so far prevented from downside acceleration is NDX, which is above it's 20MMA. Once it breaks it and the key zone that I monitor on all other indexes it would take months to get indexes back to ATH.
