On the daily chart below you can see the very strong downtrend has weakened, but the market is once again starting to show signs of a strengthening trend as ADX is now at 25.4. The price range from the weakened trend is 136-132. MACD is flat, riding the signal line with no divergence and Stochastics are on the edge of oversold territory. Bears will want to see price action and closes below 132, the current range bottom. With all of the Fed heads talking this week, we may just see that happen this week.
Click to enlarge.
On the weekly chart you can clearly see how in the first trading week of May there were excellent signals to go short. The weekly close was below the 10 and 20 period EMAs, and DI- crossed over DI+ with ADX well above this. Weekly Stochastics started correcting from overbought territory.
Have a prosperous trading week.
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