We underwent the first week of 2016 with a tumble of stock market signal for a difficult year for traders and investors all over the world.
Many forecasters and economists talk about incoming BEAR MARKET.
I totally agree with them.
The BEAR is controlling the stage, and China is driving this pair.
Look at on the chart, the fitst time SMA100 cut SMA200 was in February, 2012, then I see SMA100 cut SMA200 again ( I show on the chart).
The first cut signaled for BULL market for 3 years.
This rally of stock market was contributed by 2 elements:
- Low interest rate .
- Quantitative Easing of FED, this liquidity mainly flowed into Equity market.
Unfortunately, those two elements were eliminated by FED, now there is no fuel for BULL market.
The second cut absolutely signals for BEAR market.
It's just the beginning.
I draw Fib retracement from the low of first cut to the high of second cut.
SPX tested 23.6% Fib retracement, I think it would retest this level next week.
At least I hope SPX would test 38.2% Fib retracement level in the medium term.
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Sforex Solution: Do the right thing – Think the right way
Many forecasters and economists talk about incoming BEAR MARKET.
I totally agree with them.
The BEAR is controlling the stage, and China is driving this pair.
Look at on the chart, the fitst time SMA100 cut SMA200 was in February, 2012, then I see SMA100 cut SMA200 again ( I show on the chart).
The first cut signaled for BULL market for 3 years.
This rally of stock market was contributed by 2 elements:
- Low interest rate .
- Quantitative Easing of FED, this liquidity mainly flowed into Equity market.
Unfortunately, those two elements were eliminated by FED, now there is no fuel for BULL market.
The second cut absolutely signals for BEAR market.
It's just the beginning.
I draw Fib retracement from the low of first cut to the high of second cut.
SPX tested 23.6% Fib retracement, I think it would retest this level next week.
At least I hope SPX would test 38.2% Fib retracement level in the medium term.
-------------------------
F.B page: www. facebook-0.60% .com/trackingforexsignals (tinyurl.com/jxayluk)
Web page: www.trackingforexsignals.com
Twitter: twitter.com/SforexSolution
Contact: admin@trackingforexsignals.com
Sforex Solution: Do the right thing – Think the right way