Go for Broke Tuesday, page-2

Monday Evening Liqueurs, 4 April, 2016.

What a day. A beautiful up move in the morning. Then sideways, then all down hill from about mid-day.



Like shooting ducks in a barrel. If only it was always this easy. Look at that MACD - at Noon. Sell. Want to wait for confirmation. Around 1.30 p.m. you get it, 10/20 MA negative x-over.

OK - that's it for the day trading mob. What about the rest of us?

Here's the STW chart (STW is the tracking ETF for the XJO):



STW has stalled at a major Horizontal Support Level. That is also just above the 50-DMA. That represents a major support level.
If that breaks, then expect much lower prices.

As I mentioned in my Weekly Report, the chart is between a rock and a hard place. While the Index is stalling at a major support level, it has just overhead, a major resistance level.

We need to see how this rolls out. It might take a while. Eventually, I think that support level will break to the lower side.
Technically, this looks very much like late October, 2015. There are always ups and downs but that situation resulted in a low point being reached in early February, 2016, with an ultimate loss of more than 10%.

We'll see how this pans out.

RB.