Overbought, then oversold? The tug of war (and opinions) continues. What does sideways imply?
Last week I listed several factors that technically provide guidance to interpreting near-term market movement. Since then we've bounced around in a sideways pattern. That suggests caution (delay) and awaits the unfolding of pattern. Lower highs and higher lows are now forming a pennant image (one of various triangle patterns watched by market technicians).
Elliott Wave literature about triangles suggests they exit in the direction they were entered into. In this case, entry from the September high to the recent low at 2603. Lower exit by crossing the pennant's bottom line would be consistent with the overall view of the correction's unfold as wave C (red) or the Butterfly harmonic at point D.
Estimates are used as guidance, and not absolutes. Weak patterns in MACD, RSI and PPO allow for further declines. The near term target estimate is around 2550-60 as a major lower trendline (yellow). Failure to hold there, and then at February's famous 2532 low are to be watched closely.
Elsewhere, "jawboning" by Powell about potential slowdown in rate hikes and then by White House staff about details of the G20 meeting with China (tariffs) failed to lift markets sufficiently. Those are two closely watched areas for supporting stocks, but the market seems unconvinced. More for everyone to watch while waiting.
Last week I listed several factors that technically provide guidance to interpreting near-term market movement. Since then we've bounced around in a sideways pattern. That suggests caution (delay) and awaits the unfolding of pattern. Lower highs and higher lows are now forming a pennant image (one of various triangle patterns watched by market technicians).
Elliott Wave literature about triangles suggests they exit in the direction they were entered into. In this case, entry from the September high to the recent low at 2603. Lower exit by crossing the pennant's bottom line would be consistent with the overall view of the correction's unfold as wave C (red) or the Butterfly harmonic at point D.
Estimates are used as guidance, and not absolutes. Weak patterns in MACD, RSI and PPO allow for further declines. The near term target estimate is around 2550-60 as a major lower trendline (yellow). Failure to hold there, and then at February's famous 2532 low are to be watched closely.
Elsewhere, "jawboning" by Powell about potential slowdown in rate hikes and then by White House staff about details of the G20 meeting with China (tariffs) failed to lift markets sufficiently. Those are two closely watched areas for supporting stocks, but the market seems unconvinced. More for everyone to watch while waiting.