This past week the markets continued their downward trajectory as last week’s lows were violated setting up the continuation “momo down” move we outlined in last week’s video.
The first half of the week saw markets bounce up after dip buyers stepped up only to be met with more aggressive sellers who were able to close the markets near the weekly lows.
Interestingly the VXX which is usually inversely correlated with the SPY also ended the week near the lows after completing the reversal pattern I outlined last week.
The trading relationship between the SPY:VXX has been certainly unusual the past several weeks now so it’s worth paying attention to see how long this condition persists.
What are the markets signaling?
With the major US indices now trading right around their 50 day MA’s and the quarterly charts still green we can expect the appearance of more dip buyers who have been very well rewarded this year.
This coming week the sellers must continue to stay aggressive otherwise risk losing the downside momentum which may once again turn into another buyable pullback.
In this week’s video I discuss:
Now 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 MGC BTCUSD EEM and more for the week of Weekly Market Outlook For September 14 – 18, 2020.
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