19/10/2014

All things considered

Friday did become a correction day which accelerated until close. Most indexes closed above the daily falling 8 MA which is a sign that the upside movement is not over. All 2 hr trends are up as well but weekly and daily trends down. Dow even managed to close above the important R line from last low.

Most indexes have fallen about 10 percent which is a normal correction and should now continue the long up trend according to most analysts. My view is that the weekly trends are down and will continue and the upside movement therefore is a correction that might last for a while and then continue down firstly another 10 percent from the close. This is clear to me regarding the EU indexes. The monthly close Oct 31 will be of big importance. Now this trend has the 8 month MA down for the European indexes and sideways for the US indexes. The next 10 days until that close will be crucial.

The Euro and Gold trends are of importance.  Gold is just now in a crucial situation to break or not break the earlier low from below and the Euro so far is not in a safe up trend yet. Crude oil monthly trend is down and the upside jump Friday does not change that fact. The important level is 76 for a break on downside and 89 must be retaken and held for holding the sideways long term trend. 

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