Thursday, 18 October 2018

Technical View of Where Stocks Go from Here (15-Oct-2018)

Lots of investors use the SMA200 (daily) or SMA40 (weekly) as the definitive line that separates a bull market from a bear market.

Currently, this price level is 2769.

Clusters of stops are placed above and below, so I wouldn't be surprised to see choppy price action within a range of roughly 1.5 X the weekly ATR +/- over the next few weeks, as bulls and bears wrestle for position.

One has a hunch that it's the perfect time for the "spite long" trade: taking the opposite side of overzealous perma-bears purely out of spite. They've been out in full force recently and are usually the best contra-indicators.