March 27 2015
Update 4.49 am March 27 2015
The QQQ (Nasdaq) is currently at its daily support and also its 50 MA support. Lets hope this holds. If you check the SPY and DIA, they are also at price support. However, the stochastics are not oversold yet. Perhaps we might see a double bottom form in the QQQ. At this moment, it is still dangerous to do any buying.
Taking a look at a lower timeframe, the chart below is a 60 Min Chart of SPY. We can see how SPY fell when it broke its uptrendline. However a Bottoming Tail has formed at price support and this may tell us the general markets are rejecting to go lower. I'm looking for a rebound here. Perhaps a double bottom might form in the 60 min charts.
Yesterday we had a big drop and the market seems decimated. Today, the market at the time of writing is at support and seems to be have a slowing momentum. While it is a great idea to buy at support we need the general markets to stabilize before doing anything.
In order to determine whether the SPY has bottomed, we need to look at a lower timeframe such as the 60 min chart to see if the market has made a short term bottom.
Currently I do not see any bottom in the 60 Min Chart. Perhaps if a double bottom forms then we could say a short term bottom has formed. Right now, any buying would be dangerous.
Meanwhile, the US Dollar Index is at support and getting oversold. A rebound will be bad for oil prices making them go lower. Finding support will also drive down other currencies such as the Euro and Yen.
Meanwhile, the US Dollar Index is at support and getting oversold. A rebound will be bad for oil prices making them go lower. Finding support will also drive down other currencies such as the Euro and Yen.
