Weekend Charting and Chat. 1/2 Feb. 2020

Yesterday in Australia:

XJO was up a little on Friday, +0.13%. The past three days look like a bear flag, so expect more downside.

All indicators are turned down and giving "do-not-buy" signals.

A major support zone lies around the 50-Day EMA and a major horizontal support line. That's where this seems to be headed.

Overnight:

American indices fell heavily. Dow Jones -2.09%. SP500 -1.77%. Nasdaq -1.59%. Small Caps -2.31%

Volumes are increasing as the indices fall. That's usually a sign that panic selling is at hand. That's when we can expect a move back to the upside.

sp500:

SP500 is down to a dual support area, 50-Day EMA and horizontal support. So we could get a bounce here after Friday's wide-range, heavy volume day.

Some positive divergences are starting to show up (MACD Histogram, Stochastic, ROC) but we need more evidence.

Yesterday, I noted that we rarely get a double dip below the lower Bollinger on the MFI without a bounce. We still need to see a move back inside the lower Bolly to suggest a bounce is in place.

In the meantime, we just have to wait this out.

Commodities:

Commodities continue to get more and more oversold. Commodities Index -0.82%. Base Metals -0.56%. Energy -1.72%. Gold (safe-haven) +0.58%.

We'll know when this plunge is over when RSI rises back above 30.

CNN's Fear and Greed Index:


The FnG Index is now registering "Neutral" and nudging into the Fear Quadrant. This still isn't enough to suggest that this pull-back is over.