Buy and Sell Signals, Risk Analysis, Money Flow, Breadth, Momentum

Michael Pitre Author is a PRO memberHas Had Over 50 Followers Rank: 21 Followers: 73 Votes: 96 Years Member: 11 Last Update: 28 June 2016, 0:16 Categories: Market Timing
Trend Analysis
Swing Trading

etfmaintrends.com

Sunday AM....The BREXIT leave vote created a substantial shock to the financial system and the affects of it are going to take a while to work their way through the system. Like other financial shocks in the past the markets took a while to recover...often 3 to 4 months to regain their prior levels. Also, there is a good chance other governments in the Euro Zone will vote on whether to leave or not creating further uncertainty. The dollar will likely rise as a flight to safety will continue to play out and this will put pressure on commodities and further pressure earnings of commodity producing companies. A rise in the dollar could add pressure on emerging market stocks due to concerns about dollar-denominated debts and tighter financial conditions. Increased odds of recession in the Euro Zone is another potential problem. The US shows economic weakness in many respects but there is still no indication recession is on the horizon but this will likely increase the odds somewhat. The stock market will probably work its way lower over the near term. Buying pressure has been subdued even before this shock and without demand for stocks selling pressure could easily take the market lower over the intermediate term. Risk is now elevated.

Less

!

Sto 14 got down to the 2 level while the volume momentum oscillator at the bottom got to and extreme level...the market bounced. Looks like we are going down for
a retest of these extreme conditions. During the bull market usually the market made a substantial low after getting this oversold...but there are times where it
makes another test. This is going to tell us a lot about this market. What happens after a retest.

!

A Daily Chart of the major 'risk on' indexes.

!

!

Market Breadth Trying To Turn Higher...Breadth has not been strong enough to get the market through the layers upon layers of resistance.

!

Key Chart For Volume Analysis...This chart gives a good understanding of what internals look like from the up volume vs the down volume...has done well big picture

!

!

!

!

Market Sentiment With RSI 5 For VIX...RSI 5 got oversold for VIX and Sto for VIX has turned higher.

!

This information is presented for education purposes only. StockCharts.com is not responsible for any comments, advice, or annotations presented on this page. Please review our Terms of Use for more details.