📈 Index Review

This is the state of the market...

SPX Review

The SPX is going sideways.

I’ve mentioned in previous newsletters that MACD is a great indicator to find bottoms in indexes. We’ve seen just that when looking at the color of the MACD changing from dark red to light red (MACD bottoming).

This doesn’t mean that the market is going to rip, it just means that we have a short term bottom taking place which you can see in the lines on the chart below.

Looking at the Nasdaq, you can see that we are below the 55 and 22 SMA, which means that we have lost institutional support for the moment. It seems based on the 12 SMA that we are going sideways.

In order to go long on swing trades, you want to be above the 55 SMA. This is what tells us that we have institutions going long the stock. If we are below the 55 SMA, it means that the bears are in charge.

For my full thoughts on the market, watch the video below: