Yesterday, Janet Yellen of the Federal Reserve
spoke confirming expectations that the Fed would sit tight on interest rates. She even admitted today that the Fed is considering negative interest rates. Her ominous tone did not bode well for the markets as evinced by the abysmal market opening today here in the US. In fact, the world's markets are rearing from this glut.
As for the technicals, we have a bearish Aroon
crossover, with the ADX
signifying a solid negative trend. Additionally the MACD
has crossed over into negative territory, yet the RSI
indicates we are not yet oversold. Also note the bearish head and shoulders
pattern which suggests we have a way to go before the bulls return.
Consider any rallies due to short covering at this point. Fade into any uptrends, for they will be short lived.