Reasons Why Yesterday Signals a Trend Change
Reasons why the sell off yesterday was not just a profit taking correction, but a trend change.
1) Yesterday was a Major Distribution Day. When this occurs AFTER a large, long rally it signals a trend change.
2) After a big decline in volatility (VIX) the sell off was confirmed by a 15% spike in the VIX.
3) The US dollar index (USD) strengthened, clearing resistance and is now above both the 20 and 50 day EMAs. A strengthening dollar represents a flight to safety and foreshadows weakness in equities.
After all, the market is The Most Overbought Market in at Least 23 Years.
1) Yesterday was a Major Distribution Day. When this occurs AFTER a large, long rally it signals a trend change.
2) After a big decline in volatility (VIX) the sell off was confirmed by a 15% spike in the VIX.
3) The US dollar index (USD) strengthened, clearing resistance and is now above both the 20 and 50 day EMAs. A strengthening dollar represents a flight to safety and foreshadows weakness in equities.
After all, the market is The Most Overbought Market in at Least 23 Years.
Reasons Why Yesterday Signals a Trend Change
Reviewed by Information
on
06.20
Rating:
Reviewed by Information
on
06.20
Rating:
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