I haven't had the chance to post since Monday but this is what I added to EWA yesterday:
"Prices are now well under the 50 DMA and might see prices test the 200 DMA at 3045 before the current selling abates. If prices attempt a bounce but reverse and make a lower low then we should see a multi-week or multi-month correction that will drag down prices substantially. Technically speaking, we could see all gains from the last six months erased and see long term support at 2825 tested."
Seems like the market is going for the worst scenario which is a complete reversal of all gains made in the last 6 months. As it is, this is the fastest 10% correction in history from an all-time high and if panic really takes hold them it will break the record for a bear market from the top as well. The only significant level of support was 3045 but since the close was well below that, the next level to look at is 2825. The corona virus is just getting started in the US so it will be interesting how this is going to evolve.
Short Term Trend = Bearish
Medium Term Trend = Bullish trend being challenged
Long Term Trend = Bullish trend being challenged
* Trends are not trade signals. Trends are posted for situational awareness only and does not take into account wave counts, technical or fundamental conditions of the market. While mechanically trading the posted trends is feasible, keep in mind that these are lagging indicators and as such are prone to whipsaws and I personally do not use nor recommend them to initiate or close positions in the market without taking
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