The "S&P 500" and "Nasdaq Composite" Index fell for a 7th straight day on Wednesday in the first week of November, which is the longest losing streak since the year 2011.
www.marketwatch.com/...n-5-years-2016-11-02
www.bloomberg.com/ne...te-house-intensifies
The Stochastic oscillator, the Bollinger Band Percent and the Commodity Channel Index all three show a very strong downtrend, which can be read as a "oversold" signal. The FED meeting is behind us and they didn't hike in November, which is positive for stocks (at least until December). Facebook’s third-quarter earnings beat estimates (the data was “really good” said Brian Wieser, an analyst with Pivotal Research), therefore another downside risk factor is behind us. If recent history is any guide, there is now at least a chance for a dead cat bounce higher until the US election on November 8, 2016.
Long entry: 2090-2095
Stop loss: 2085
Target: 2125
Risk: 5-10 points
Reward: 30-35 points
www.marketwatch.com/...n-5-years-2016-11-02
www.bloomberg.com/ne...te-house-intensifies
The Stochastic oscillator, the Bollinger Band Percent and the Commodity Channel Index all three show a very strong downtrend, which can be read as a "oversold" signal. The FED meeting is behind us and they didn't hike in November, which is positive for stocks (at least until December). Facebook’s third-quarter earnings beat estimates (the data was “really good” said Brian Wieser, an analyst with Pivotal Research), therefore another downside risk factor is behind us. If recent history is any guide, there is now at least a chance for a dead cat bounce higher until the US election on November 8, 2016.
Long entry: 2090-2095
Stop loss: 2085
Target: 2125
Risk: 5-10 points
Reward: 30-35 points
