US Markets Showing Signs Of Slowing Down

I am heading out on vacation for a few weeks, but wanted to leave a brief market update before I leave.

The US markets are currently sending mixed signals and if you are actively trading at the moment – be careful

Bullish Signs

• July saw the breakout of the down trend from the April high – “Price Channel Breakout” – Positive
• Price dragged itself above the 200 day moving average and has remained there for a few days = Positive
• MACD still looks strong

Bearish Signs

• Volume has been diminishing over the last 10 days suggesting a backing away from the rally
• RSI & TSV are not negative, but they are showing sighs of slowing

Contingency Plans

Always have a plan ready!

• If price breaks below the 200 day MA – move to cash or go short
• If price rests on the 200 day MA and pauses for breath, then starts to advance, go long and look for higher volume.
• We may see some sideways movement over the next few weeks, so maybe a good time to take a break.

Have a great holiday everyone.