OK. This is where events start getting interesting. Is the shite going to hit the fan or not?
Short Term - the market is over sold. See the number of the 50-Leaders below the 10-Day Moving Average. That suggests the next movement will be up. And the action today provides evidence for that.
The number of 50-Leaders below the 50-Day Moving Average is still above the oversold level. That indicator has now broken below the shallow uptrend line from November (see the black line). This suggests more down movement is probable until the oversold level is reached.
But - the number of the 50-Leaders above the 150-Day Moving Average has hit the down-trending support line (see the grey line).
So - we've got the short-term tension - very oversold - so it should resolve to the upside.
The medium term tension - which is to the down side.
And the long term tension - which is at the balance point.
Things are fairly evenly balanced.
Given the current state of the American futures - and the very oversold short term indicators - I feel sure that this will resolve to the upside.
But - you never know what will happen on the stock market.
Cheers
Red
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