We looked at the S&P 500 Index (SPX). We saw some bearish signals that are pointing to a price drop.
The Dow Jones (US30) and SPX tend to move together... This one is already in the red... Let's have a look.
Dow Jones Bearish Chart Signals
First, we have prices already trading below EMA50.
Yesterday's candle closed below this important level.
The market closes on the weekend... Potential "blood" on Monday.
The MACD is already below zero and trending lower. The histogram being red now for many consecutive days.
The RSI is weak while aiming lower.
The trading volume is red, red, red, red as well as past 9 daily candles.
Past action - Oct. 2020
In the past, when the Dow Jones closes below EMA50 a strong correction becomes possible.
Here it might still be early since yesterday's candle isn't that strong... But another bearish candle below EMA50 and we are likely to see a strong drop.
Get ready... Crash ahead.
Thanks a lot for reading and for your continued support.
Anyone with ANY business sense knew that if a) Biden gets elected, and b) the government continues to print money willy nilly, interest rates are going to go through the roof. Along with a lot of Covid delayed mortgage payments coming due, it's a recipe for disaster. I would bet that this makes the 2008 crisis look like a blip on the radar. RIP economy. Get some gold, move your aggressive 401k earnings into some low risk treasuries, enjoy the dollar cost averaging in your upcoming 401k contributions (leave those in aggressive), and hang on.
emrelg
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alan failed master :)
The12thBurn
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Will it affect crypto market?
AlanSantana
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@The12thBurn, If this happens we might be an inverse relation.