Markets just been moving sideways for some weeks now and kinda neutral with small caps being on fire over past 1 month. Overall the small caps has been moved back down more than overall markets which is bearish and the same with IYR reit index - which made a bearish engulfing some days ago and confirmed it. Overall markets still at extremes of extremes when looking at overbought conditions, both on daily weekly and monthly now. So many BEARISH divergences and we can also count 5 waves up from bototm. A correction is at least comming soon and will probably start next week. The markets is making a doji reversal right now on the WEEKLY chart, which is often a reversal bar.
Target for the correction is still in 1150-1180 area , but price/action should tell us over next 2 weeks how low we will go. If very low volume, just creeping lower, then we might only go to 1200, but if we get heavy selling with volume we might hit target and maybe lower.
Have a nice day
No comments:
Post a Comment