This past week buyers finally found a reason to take profits and sellers to get aggressive and short as worries around the Coronavirus spread to the markets.
As I discussed in last week’s video, the recent melt-up left behind some poor market structure and gaps which has left markets vulnerable to a deeper correction.
It’s nearly impossible to predict what will be the catalyst that finally causes a major reversal but anytime you see the markets rewarding the chase you can be assured that each payout cycle sows the seeds for the next payback cycle.
Strategies that were once rewarded will be the first to give back profits.
Along with the ongoing Coronavirus newsflow, this coming week presents a plethora of economic news and earnings reports so buckle up.
In this week’s video, I review this past week’s price action on the indices to see what we can expect in the short term.
As well I analyze the price action on all the major US sectors to see what it would take to change the current uptrend.
Watch this week’s Weekly Outlook video to see the setups and levels we’ll be watching as well as the technical outlook for the VXX SPY QQQ IWM DIA EEM TSX TLT GLD BTCUSD ETHUSD EEM and major sectors more for the week of Weekly Market Outlook For – January 27 – 31, 2020.
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