Dear all,

With reference to my earlier write-up citing that “Volatility in the market is among the lowest in 118 years…” (click HERE), I guess the old saying is still true. i.e. “Be careful of what one wishes for”, especially in the equity markets!

Global indices have recently tumbled at least 6% since their recent high. Will markets fall further?

S&P500 closed at 2,682

S&P500 has swung from an intraday high of 2,873 on 26 Jan 2018 to touch an intraday low of 2,593 on 6 Feb 2018. 20D and 50D exponential moving averages (“EMAs”) are turning downwards. Other indicators, such as OBV, MACD and RSI (naturally) have weakened in tandem with the sharp slide. RSI closed at 37.5 on 7 Feb 2018 which is not oversold yet. ADX closed at 47 amid negatively placed directional indicators. Volatility has picked up with daily average true range …