27 February 2020 – Indices in correction territory
Indices Dow Transportation gapped down and closed at 9484.44 with a big bearish candle below its 8 EMA, 21 EMA, 50 SMA, 200 SMA. Daily trading range is 515.47. Fractal Chaos Band – closed below its FCB. Long Cycle Wave – negative and falling. Medium Cycle Wave – negative and falling. Short Cycle Wave – negative and falling. Market direction – Strong DownTrend. Momentum – Strong Downward. RSI – 19.9.
Dow Industrial closed at 25766.64 with a huge bearish candle below its 8 EMA, 21 EMA, 50 SMA and 200 SMA. Daily trading range – 1204.77. Fractal Chaos Band – closed below its FCB. Long Cycle Wave – negative and falling. Medium Cycle Wave – negative and falling. Short Cycle Wave – negative and falling. Market direction – Strong DownTrend. Momentum – Strong Downward. RSI – 18.6.
Russell 2000 closed at 1497.8701 with a big bearish candle below its 8 EMA, 21 EMA, 50 SMA and 200 SMA. Daily trading range – 58.0812. Fractal Chaos Band – closed below its FCB. Long Cycle Wave – negative and falling. Medium Cycle Wave – negative and falling. Short Cycle Wave – negative and falling. Market direction – Strong DownTrend. Momentum – Strong Downward. RSI – 21.3.
Nasdaq 100 closed at 8873.757 with a doji candle below its 8 EMA, 21 EMA, 50 SMA and above its 200 SMA. Daily trading range – 218.9531. Fractal Chaos Band – closed below its FCB. Long Cycle Wave – negative and falling. Medium Cycle Wave – negative and falling. Short Cycle Wave – negative and falling. Market direction – Strong DownTrend. Momentum – Strong Downward. RSI – 26.8.
S&P 500(SPX) gapped down and closed at 2978.76 with a huge bearish candle below its 8 EMA, 21 EMA, 50 SMA and 200 SMA. Daily trading range – 139. Fractal Chaos Band – closed below its FCB. Long Cycle Wave – negative and falling. Medium Cycle Wave – negative and falling. Short Cycle Wave – negative and falling. Market direction – Strong DownTrend. Momentum – Strong Downward. RSI – 20.1.
Metals and Commodities WTI Crude oil futures (CL) closed at $46.34 per barrel with a bearish candle below its 8 EMA, 21 EMA, 50 SMA, 200 SMA. Daily trading range – 2.9. Fractal Chaos Band – closed below its FCB. Long Cycle Wave – negative and falling. Medium Cycle Wave – negative and falling. Short Cycle Wave – negative and falling. Market direction – Strong DownTrend. Momentum – Strong Downward. RSI – 26.2.
Gold (/GC) closed at 1646.3 with a spinning top doji candle above its 8 EMA, 21 EMA, 50 SMA, 200 SMA. Daily trading range – 25.8. Fractal Chaos Band – closed within its FCB. Long Cycle Wave – positive and rising slope. Medium Cycle Wave – positive and falling slope. Short Cycle Wave – positive and falling slope. Market direction – Strong UpTrend. Momentum – Neutral. RSI – 68.2.
Commodities (DBC) ETF gapped down and closed at 13.85 with a spinning top doji candle below its 8 EMA, 21 EMA, 50 SMA, 200 SMA. Daily trading range – 0.24. Fractal Chaos Band – closed below its FCB. Long Cycle Wave – negative and falling. Medium Cycle Wave – negative and falling. Short Cycle Wave – negative and falling. Market direction – Strong DownTrend. Momentum – Strong Downward. RSI – 24.6.
Bonds Bond futures (/ZB) closed at 168’03 with a big bullish candle above its 8 EMA, 21 EMA, 50 SMA and 200 SMA. Daily trading range – 2.1875. Fractal Chaos Band – closed above its FCB. Long Cycle Wave – positive and rising. Medium Cycle Wave – positive and rising. Short Cycle Wave – positive and rising. Market direction – Strong UpTrend. Momentum – Strong Upward. RSI – 74.
High Yield bond ETF (HYG) gapped down and closed at 85.69 with a big bearish candle below its 8 EMA, 21 EMA, 50 SMA and 200 SMA. Daily trading range – 1.34. Fractal Chaos Band – closed below its FCB. Long Cycle Wave – negative and falling. Medium Cycle Wave – negative and falling. Short Cycle Wave – negative and falling. Market direction – Strong DownTrend. Momentum – Strong Downward. RSI – 24.5.
Currency The dollar index ($DXY) closed at 98.386 with a big bearish candle below its 8 EMA, 21 EMA and above its 50 SMA, 200 SMA. Daily trading range – 0.784. Fractal Chaos Band – closed within its FCB. Long Cycle Wave – positive and falling. Medium Cycle Wave – positive and falling. Short Cycle Wave – negative and falling. Market direction – Strong DownTrend. Momentum – Strong Downward. RSI – 48.2.
EUR/USD closed at 1.0998 with a big bullish candle above its 8 EMA, 21 EMA and above its 50 SMA, 200 SMA. Daily trading range – 0.0131. Fractal Chaos Band – closed within its FCB. Long Cycle Wave – negative and rising. Medium Cycle Wave – negative and rising. Short Cycle Wave – positive and rising. Market direction – Strong UpTrend. Momentum – Strong Upward. RSI – 56.5.
USD/JPY closed at 109.57 with a big bearish candle below its 8 EMA, 21 EMA and above its 50 SMA and 200 SMA. Daily trading range – 0.5729. Fractal Chaos Band – closed within its FCB. Long Cycle Wave – positive and falling. Medium Cycle Wave – positive and falling. Short Cycle Wave – negative and falling. Market direction – Strong DownTrend. Momentum – Strong Downward. RSI – 42.1.
Relative Strength – Sectors On a 3-monthly lookback, the relative strength order of the S&P ETF 500 sectors are XLU, XLK, /ES, XLF, XLI, SPX, XLY, XLE, XLV, XLP, SPY and XLB.
On a 12-monthly lookback, the relative strength order of the S&P 500 ETFs are XLK, XLU, XLP, XLV, SPX, SPY, XLF, XLY, /ES, XLI, XLB and XLE.
Market Internals Market Sentiment – Bearish. Market Breadth – sloping downward showing more losers than gainers. Volume Acc/Dis – sloping downward and showing distribution. Skew – 128.93. Vix – 39.16 and Vix Futures – 27.10.
The Week Ahead Skew is normal. Vix has increased to below 40 and Vix futures is below 28. There is fear in the market. Market Internals are showing weaknesses. Market sentiment is bearish. Oil continues to sell off in anticipation of lesser demand in a potential recession. Bond continues to trended higher as a flight to safety from the equity market. The prognosis is the indices will continue to be under selling pressure as the market priced in the COVID19 induced recession.
To Your Wealth! Would you like to learn to trade stocks, Options or Futures? Drop us an email at jefftohch@gmail.com or call +6010 4343 948. If you have been an unsuccessful trader and need personal tutorship, we can provide you with personal coaching to take you to be a profitable trader.
27 February 2020 – Indices in correction territory
Indices
Dow Transportation gapped down and closed at 9484.44 with a big bearish candle below its 8 EMA, 21 EMA, 50 SMA, 200 SMA. Daily trading range is 515.47. Fractal Chaos Band – closed below its FCB. Long Cycle Wave – negative and falling. Medium Cycle Wave – negative and falling. Short Cycle Wave – negative and falling. Market direction – Strong DownTrend. Momentum – Strong Downward. RSI – 19.9.
Dow Industrial closed at 25766.64 with a huge bearish candle below its 8 EMA, 21 EMA, 50 SMA and 200 SMA. Daily trading range – 1204.77. Fractal Chaos Band – closed below its FCB. Long Cycle Wave – negative and falling. Medium Cycle Wave – negative and falling. Short Cycle Wave – negative and falling. Market direction – Strong DownTrend. Momentum – Strong Downward. RSI – 18.6.
Russell 2000 closed at 1497.8701 with a big bearish candle below its 8 EMA, 21 EMA, 50 SMA and 200 SMA. Daily trading range – 58.0812. Fractal Chaos Band – closed below its FCB. Long Cycle Wave – negative and falling. Medium Cycle Wave – negative and falling. Short Cycle Wave – negative and falling. Market direction – Strong DownTrend. Momentum – Strong Downward. RSI – 21.3.
Nasdaq 100 closed at 8873.757 with a doji candle below its 8 EMA, 21 EMA, 50 SMA and above its 200 SMA. Daily trading range – 218.9531. Fractal Chaos Band – closed below its FCB. Long Cycle Wave – negative and falling. Medium Cycle Wave – negative and falling. Short Cycle Wave – negative and falling. Market direction – Strong DownTrend. Momentum – Strong Downward. RSI – 26.8.
S&P 500 (SPX) gapped down and closed at 2978.76 with a huge bearish candle below its 8 EMA, 21 EMA, 50 SMA and 200 SMA. Daily trading range – 139. Fractal Chaos Band – closed below its FCB. Long Cycle Wave – negative and falling. Medium Cycle Wave – negative and falling. Short Cycle Wave – negative and falling. Market direction – Strong DownTrend. Momentum – Strong Downward. RSI – 20.1.
Metals and Commodities
WTI Crude oil futures (CL) closed at $46.34 per barrel with a bearish candle below its 8 EMA, 21 EMA, 50 SMA, 200 SMA. Daily trading range – 2.9. Fractal Chaos Band – closed below its FCB. Long Cycle Wave – negative and falling. Medium Cycle Wave – negative and falling. Short Cycle Wave – negative and falling. Market direction – Strong DownTrend. Momentum – Strong Downward. RSI – 26.2.
Gold (/GC) closed at 1646.3 with a spinning top doji candle above its 8 EMA, 21 EMA, 50 SMA, 200 SMA. Daily trading range – 25.8. Fractal Chaos Band – closed within its FCB. Long Cycle Wave – positive and rising slope. Medium Cycle Wave – positive and falling slope. Short Cycle Wave – positive and falling slope. Market direction – Strong UpTrend. Momentum – Neutral. RSI – 68.2.
Commodities (DBC) ETF gapped down and closed at 13.85 with a spinning top doji candle below its 8 EMA, 21 EMA, 50 SMA, 200 SMA. Daily trading range – 0.24. Fractal Chaos Band – closed below its FCB. Long Cycle Wave – negative and falling. Medium Cycle Wave – negative and falling. Short Cycle Wave – negative and falling. Market direction – Strong DownTrend. Momentum – Strong Downward. RSI – 24.6.
Bonds
Bond futures (/ZB) closed at 168’03 with a big bullish candle above its 8 EMA, 21 EMA, 50 SMA and 200 SMA. Daily trading range – 2.1875. Fractal Chaos Band – closed above its FCB. Long Cycle Wave – positive and rising. Medium Cycle Wave – positive and rising. Short Cycle Wave – positive and rising. Market direction – Strong UpTrend. Momentum – Strong Upward. RSI – 74.
High Yield bond ETF (HYG) gapped down and closed at 85.69 with a big bearish candle below its 8 EMA, 21 EMA, 50 SMA and 200 SMA. Daily trading range – 1.34. Fractal Chaos Band – closed below its FCB. Long Cycle Wave – negative and falling. Medium Cycle Wave – negative and falling. Short Cycle Wave – negative and falling. Market direction – Strong DownTrend. Momentum – Strong Downward. RSI – 24.5.
Currency
The dollar index ($DXY) closed at 98.386 with a big bearish candle below its 8 EMA, 21 EMA and above its 50 SMA, 200 SMA. Daily trading range – 0.784. Fractal Chaos Band – closed within its FCB. Long Cycle Wave – positive and falling. Medium Cycle Wave – positive and falling. Short Cycle Wave – negative and falling. Market direction – Strong DownTrend. Momentum – Strong Downward. RSI – 48.2.
EUR/USD closed at 1.0998 with a big bullish candle above its 8 EMA, 21 EMA and above its 50 SMA, 200 SMA. Daily trading range – 0.0131. Fractal Chaos Band – closed within its FCB. Long Cycle Wave – negative and rising. Medium Cycle Wave – negative and rising. Short Cycle Wave – positive and rising. Market direction – Strong UpTrend. Momentum – Strong Upward. RSI – 56.5.
USD/JPY closed at 109.57 with a big bearish candle below its 8 EMA, 21 EMA and above its 50 SMA and 200 SMA. Daily trading range – 0.5729. Fractal Chaos Band – closed within its FCB. Long Cycle Wave – positive and falling. Medium Cycle Wave – positive and falling. Short Cycle Wave – negative and falling. Market direction – Strong DownTrend. Momentum – Strong Downward. RSI – 42.1.
Relative Strength – Sectors On a 3-monthly lookback, the relative strength order of the S&P ETF 500 sectors are XLU, XLK, /ES, XLF, XLI, SPX, XLY, XLE, XLV, XLP, SPY and XLB.
On a 12-monthly lookback, the relative strength order of the S&P 500 ETFs are XLK, XLU, XLP, XLV, SPX, SPY, XLF, XLY, /ES, XLI, XLB and XLE.
Market Internals
Market Sentiment – Bearish. Market Breadth – sloping downward showing more losers than gainers. Volume Acc/Dis – sloping downward and showing distribution. Skew – 128.93. Vix – 39.16 and Vix Futures – 27.10.
The Week Ahead
Skew is normal. Vix has increased to below 40 and Vix futures is below 28. There is fear in the market. Market Internals are showing weaknesses. Market sentiment is bearish. Oil continues to sell off in anticipation of lesser demand in a potential recession. Bond continues to trended higher as a flight to safety from the equity market. The prognosis is the indices will continue to be under selling pressure as the market priced in the COVID19 induced recession.
To Your Wealth!
Would you like to learn to trade stocks, Options or Futures? Drop us an email at jefftohch@gmail.com or call +6010 4343 948. If you have been an unsuccessful trader and need personal tutorship, we can provide you with personal coaching to take you to be a profitable trader.
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