05/20 market review

Review summary: down tomorrow 

 

Market goes lower on higher volume today.  The edge favors that we will see lower low the next day in the coming days based on this price/volume relationship. 

 

Both SPY daily, both price and RSI retest the broken trendline and then head lower.  One the 20 day moving average is taken out, I believe we are going to see some wafterfalls across the broader market.  Again, my view is that we have the top already on May 8th and midterm trend is down.

 

 

 

Also, I’ve seen so many traders talking about 200ma and the general idea is that at least we will test the line this time before going lower.  So it’s likely truth is against the mass again…     STO already gives the top signal on May 8 as I posted this chart at the time.

 

 

 

Solar ETF, TAN, gives out the buy signal today.  It’s a very nice bottom pattern and can lead to cup & handle break out.  As I mentioned, the energy sector may have different trend with the general market in the coming days and if I go long on something, solar is one of the choices.  I will list the count on USO this weekend.