Stock Market Technical Analysis Blog
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In the market today we closed slightly in the red as we had a third day of prop, chop, and drop, rinse and repeat, giving us a tiny slightly downhill channel shown with blue lines at right edge of chart 2 above. Also note that in that same chart there is a last line of defense diagonal trendline, shown in orange, that can also be seen in chart 4 below it.
Looking at chart 4, we finally slipped thru the center line of the mother channel with the orange diagonal line holding it at the bell. If that line is pierced tomorrow it will cause the orange EMA to downcross thru the green EMA line in chart 1. The combination of the two may speed up the decline unless they intervene with a market rescue. So far, they have managed to keep the decline slow enough to keep most shorts from piling on and also slow enough to keep most investors from becoming worried enough to sell. Left on its own, the market may very well continue to the lower channel line tomorrow but with Ben and Co operating in crisis support mode this week it's always possible he can start a wicked short squeeze.
Trade well my friends
Alan
