This market for 2016 has been tough, no doubt. Right now, we are very close to a bottom in the market. I show you 2 charts to back up my view. First, the 200 weekly moving average is showing a test of support (the red line). It seems the market uses this moving average to determine where to find support, so I believe it will do the same here.
Next, I believe the energy sector is close to a bottom. Notice the spike in volume, with a selloff this time around? This is opposite of the last time USO spiked in volume and rallied. Which tells me we are at the exhaustive phase (there could be 1 more final push lower next week, but very close). With that, I think energy will have the biggest percentage gains when we bounce.
tb
1 comment:
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