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CURRENT MARKET TREND: Down on 1/24/2020






Tuesday, October 14, 2014

Looking for indications of a bottom

I apologize for the lack of posts, been busy with the new house and child. Still figuring out my time management.

I am on the lookout for a medium term low, bounce, and then downside to resume.

Stop-losses on the SP-500 should be at 1899 with 1899 being a buy stop (meaning you should get long above 1899 with stop-losses set at the prior low).

The VIX barely closed back inside it's upper BB. A close below 22.79 tomorrow issues an equity buy signal:

The RUT has entered into it's 4th wave FSZ (Fib Support Zone). Wave 4 =.382* wave 3 and wave 4 = wave 2. The ADX is nicely above the 40 line saying a trend reversal is due. There are two ways to trade the ADX, on a straight up rollover which has produced as much as 50 points drawdown before a reversal in the past, or by waiting for the ADX to dip back under the 40 line. The latter has produced 20 point max drawdowns. I can't rule out new lows, but I think new lows are buying opportunities.

Stops on the RUT should be at 1098:

RSI on SPX/VIX is in an area that has produced lows before, although a touch of the 30 line gives better signals:


VIX/VXV over 1 should always have bears worried:

The NYHLR was under .10 at one point:


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