Post by
drbob512 on Nov 11, 2020 10:38pm
T.A. for S&P500 for Wed:
After Monday's big selloff, the mkt has stabilized, for now. RSI is rising despite volatility but isnt overbought yet. It is a good sign that the SPY didn't have follow thru weakness ystrdh or today after Monday's drop. Bulls never want to see 3 big black candles in a row like what occurred in Feb/Mar & in 2018, 2008, 2001. It usually portends an intermed downtrend or further sharp selloff. FAANG+M seem to be firming up so they need follow thru this week & early next week if they are to regain leadership. Also, disruptive growth stocks, like FVRR CRWD TDOC TWLO rallied sharply today but most of them still have stochastics crossed down, so they could see more volatility & declines before high flyers become leaders again. If FAANG+M regain relative strength from value & small cap stocks, that would help the high flyers. Its Re-open stocks vs. Stay@at-home stocks for now.