Market MATH
27-May-2024: Bearish Engulfing on the Indices. Breadth deteriorates further
MATH: Momentum Anticipation and Trend by Homma:
As technical traders, We
“Anticipate, but confirm. Wish, but only react.”
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N500 and N50 both put bearish engulfing candles today:
Net 4% Movers declining:
10-day Momentum at the previous Top and pointing down:
20-Day momentum Declining and forms a bearish divergence:
ADX momentum indicator crosses below its 5-DMA.
To Summarize.
A caution is warranted and Markets could stop the trend up at the least. As always these smaller ups and downs are not to be paid any attention by the Long Term and Pozitional folks. But swingers should tighten up their stops and books partials if losing the gains is something they will regret.
As always, "Anticipate but confirm".
Cheerios
That’s all for today.
See you soon
Homma