HGSI Doc 2020.03.09 – The Longer Term View After the Morning Downturn
The market has opened as ugly as predicted and seems to be trading sideways after a huge Gap down at the open.
I have attached and marked up a Monthly Chart on SP Futures using ABLESYS indicators on ESignal.
I find it remarkable how we have not seen one red bar since 2009. A green bar is neutral, blue bullish and red bearish. I also note how we have thus far respected the 50 Week Moving average. This has been support before.
Yes, always looking for a silver lining but on this longer term view:
- This pullback is not that abnormal from perspective of long term moving averages
- We do not have the longer term sell signal yet. However we also have 20 more days in the month to trigger the red bar
- A natural line in the sand for support is the 2600 level.
- If we lose 2600, the prior basing around 2100 comes into play.
Dr. Jeffrey Scott is a private investor and educational affiliate for HGSI Investment Software LLC