Wednesday Night Liqueurs. 14 September, 2016. STW, tracking ETF...

Wednesday Night Liqueurs. 14 September, 2016.

STW, tracking ETF for the XJO, up today 0.3%:



Short term this is bullish, longer term it remains bearish.

Expect a counter trend rally in the short term.

The market is oversold and close to a major support level - the 200Day MA.

The 20-Day MA has crossed negatively below the 50-Day MA. There seems no likelihood that the stock chart will burst upwards through that negative cross-over.

Overhead is a major gap down. Gaps usually fill, but the upper level of the gap often provides resistance. Gaps tend to have a magnetic quality which draws the chart towards it. And then, once reached, gets rejected.

For the time being, the target for this move up is 50.56. That's the closing level on 9 September. The STW is currently at 49.51. That's about +2% higher. If we get that move, it should suck in a lot of optimistic bulls. Who will then face the knife.

Well - that's my story. Let's see how it goes.

Always follow the chart - not the story.

RB.