The last Dow update was just a week earlier where the outlook was bullish when the Dow Transports made a new high negating the effect of crude which was a sign of caution.
Now the Transports have broken the previous swing lows and has closed below the 50 DMA. The volumes were also more than average this time. What is worth mentioning is that the decline has persisted for 2 days and both days were more about 1% decline.
The RSI and Macd was already on bearish divergence sell signal. Chart.
The current effect is due to Middle east disturbance which is escalating day by day and can have wider geopolitical risks. The biggest is the crude shock. The last one was in 1971 which we have to study in detail to know the effect. Will post the results about that later.
Now the Transports have broken the previous swing lows and has closed below the 50 DMA. The volumes were also more than average this time. What is worth mentioning is that the decline has persisted for 2 days and both days were more about 1% decline.
The RSI and Macd was already on bearish divergence sell signal. Chart.
The current effect is due to Middle east disturbance which is escalating day by day and can have wider geopolitical risks. The biggest is the crude shock. The last one was in 1971 which we have to study in detail to know the effect. Will post the results about that later.
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