Dear all,
Besides the headline grabbing news on Facebook and the U.S. China trade tariffs etc. some of you may have noticed other equally interesting / alarming headlines such as the island reversal chart formation seen in Nasdaq 100 (click HERE) and Nasdaq Composite index, and reports that a potential “Dow Theory” sell signal, one of the oldest and arguably the most widely followed market timing tool, may happen anytime (click HERE). What should we do?
Let’s take a closer look at the charts and my personal action plan.
S&P500 closed 2,640. Day range 2,610 – 2,659Based on Chart 1 below, after S&P500 closed below 200D exponential moving average on 23 Mar 2018, S&P500 staged a sharp 71 point recovery the next day. However, it gave out more than half of the gains by forming a bearish engulfing candle on 27 Mar 2018. ADX has ...
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