Major US indices closed the week with very concerning candle signals and technical events and today I am evaluating more data points than usual in order to understand the depth of the issues.
World Indices, Weekly
The indices of world major economies (US, Germany, Japan, France, UK, Australia) have completed or about to complete powerful bearish candle formations on the weekly frames. While some confirmations are required, the bearish odds are significantly higher and the chances of the next week red are strong.
The concern here is that if the indices move further down for next 1-2 weeks, they could print some very bearish candles on the monthly and, possibly, quarterly frames.
One of my long term indicators (not naming it) turned bearish last week. Last time it happened in February 2020. I still hope it would bounce back, but the chances are really slim as 50/200 crosses are not easily reversed.
VIX candles and TA signal a move higher, possibly a substantial move in the upcoming weeks/months.
I discussed this in details yesterday:
The sample of Large Cap stocks that I use to measure Market Pulse shows some strong bearish candle formations on the weekly frames that threaten to become the major reversal combos on the monthly. Something to think about.
I think that the Market is about to make a significant turn. It is not clear yet whether it is going to be a brisk one that ends within a few months or a painful multi-month downtrend.
It looks like the next few weeks would provide some answers.
I am not sharing the possible long-term bullish and bearish EW charts for indices as it is not clear which path could be taken. Neutral for now.
This analysis is part of the series of Weekly Analyses that our service provides on:
$DXY $VIX $SPX $DJI $NDX
$gold $silver $GDX
some large cap stocks, other cryptocurrencies and commodities.
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