SP500 has a lot of support at this level but as you can see the line has been broken. 2HR MACD shows some consolidation at this level, but the 4hr, and daily MACD have plenty of room to keep going lower.
If this support line is broken, next stop is 2700.
Oil has followed a pretty tight trend line in the last few days.
We have some pretty strong resistance right at this level, while oil is also following a pretty decent support line.
We either leg up or leg down from here but with the broader markets moves, I definitely see a downward fall, potentially significant.
Since 2013, in months following a green candle month, natural gas has went up the next month and finished with a green candle 20 out of 41 times, or just under 50% of the time.
In the months following a green candle month, natural gas has went down the next month and finished with a red candle 21/40 times or just over 50% of the time.
The the months following...
We could potentially see a new downtrend develop in the broader market if reports this week are overly negative. If this were to happen, the SP500 is at a trend high on the daily MACD, which could signal a new trend downwards.
The chart shows it all, and it's simple.
The 25day MA has only crossed the 100day MA two previous times in recent history. 2001, which resulted in roughly a 50% crash, and 2008 which was roughly a 40% crash.
Is the crash here?
