Tuesday January 22, 2019
NYSE Advance Decline Line
Today marks the fourth failure of the A/D line to vault the 61.8% re tracement level. Note RSI rolling over at top and MACD topping at bottom.
This suggests that the vigorous rally from Dec 24 was in fact a bear market rally.
VIX bounces at support
This is ominous. VIX has bounced at support suggesting it will attack previous resistance at 36. VIX is up, MACD is bottoming, RSI is turning up below 50, all this is very negative.
SPX
SPX if failing just above the 50% level. All this adds to a picture suggesting this really is a bear market.
Scan the headlines in the WSJ today. There is little positive mood. China sags, PM May cannot find a way out of Brexit, Gridlock abounds in the USA,
Hedge Two Hour chart
I am adding Hedge shares tomorrow. IO suspect the counter trend rally has ended from Dec 24.
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