I am flying my crash alert flag today.
Based on the following indicators:
MACD Descending Bearish
Slow Stoch Weak Bearish
RSI Descending Bearish
Stock vol Descending Bearish trend
Additionally we have the 4 day EMA about to cross the lower edge of the Keltner channel. In the past this has been a bearish indicator.
We also note that the 200 day MA is only 15 points away.
We wonder if this will act as strong resistance and the market will move sideways as it tests this level? A breach of the 200 day MA could mean a test of 1160, our target level on an intermediate time-frame.
Will we get a bounce off the Keltner channel lower edge or the 200 Day MA, or will the downward trend break through both barriers?
We will watch the markets closely this week.