Wednesday, February 28, 2018

market comment with 2 charts


The is the best of US market ETFs, and it looks like it doesn't want to break thru to a new high.

So what you should want to know right now is, will we stall here, or have another waterfall 10% collapse?

Well, since absolutely everything got correlated in the last spike and subsequent collapse, let's look for a clue in the reach for yield space:

And in this case, China failed at the Bollinger mean and has now dropped below its SMA(50) and gone Bollinger negative.

So either China diverges from the US in the next bit, or the failure in China yesterday means an upcoming failure in the US equities.

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