Black Friday was fun for bargain grabs, but not so much for buying stocks. Are better bargains ahead, or will prices rise now that sales events are over? Unlike price guarantees when retail shopping, no such benefit exists when buying equities.
Market anxiety has increased with higher levels of bearish sentiment and a week of lower stock prices. Technical indicators reflect oversold conditions and reasonable expectation for a pause, but not without challenges.
Wave "C" of the Fall 2018 correction is underway with major tests ahead. On the downside a push to lower lows requires completion of the immediate decline, but faces lower channel line resistance. An upward contra wave move after an immediate term low faces substantial upside resistance at 50d and 200d sma before wave "C" can target lower levels.
A "death cross" looms if the 50d sma declines below the 200d sma. That circumstance has not been seen since April 2016.
In summary, a choppy process with potential to whipsaw short term trades is ahead. For longer term consideration it is a good time to assess and then identify direction for positioning. News events are sure to trigger emotion with upcoming G20 meeting, Fed rate hike, OPEC meeting, etc. Best to keep calm and focused on the market's bigger trend, minus emotion, while those events play out.
Market anxiety has increased with higher levels of bearish sentiment and a week of lower stock prices. Technical indicators reflect oversold conditions and reasonable expectation for a pause, but not without challenges.
Wave "C" of the Fall 2018 correction is underway with major tests ahead. On the downside a push to lower lows requires completion of the immediate decline, but faces lower channel line resistance. An upward contra wave move after an immediate term low faces substantial upside resistance at 50d and 200d sma before wave "C" can target lower levels.
A "death cross" looms if the 50d sma declines below the 200d sma. That circumstance has not been seen since April 2016.
In summary, a choppy process with potential to whipsaw short term trades is ahead. For longer term consideration it is a good time to assess and then identify direction for positioning. News events are sure to trigger emotion with upcoming G20 meeting, Fed rate hike, OPEC meeting, etc. Best to keep calm and focused on the market's bigger trend, minus emotion, while those events play out.