Monday 2 February 2015

Downside momentum building

A new month has begun with further dynamic swings in the US equity indexes. With January closing with a bearish MACD cross... February is seeing underlying price momentum increasingly swinging in favour of the equity bears.



Little to add.

What is important... unlike October.. the bears finally managed a bearish monthly close for January.

If Feb' can close at least a little lower, it'd make for the third consecutive monthly decline... and would be highly suggestive of a much bigger move to the low sp'1700s.

First things first though... lets see if the bears can hit 1920/00 within the next 9 trading days. It won't be easy, but then... when the 200dma was lost in early October... things unravelled rather fast.