The Stochastic oscillator, the Bollinger Band Percent and the Commodity Channel Index all three show a very strong downtrend, which can be read as a "oversold" signal. The FED meeting is behind us and they didn't hike in November, which is positive for stocks (at least until December). Facebook’s third-quarter earnings beat estimates (the data was “really good” said Brian Wieser, an analyst with Pivotal Research), therefore another downside risk factor is behind us. If recent history is any guide, there is now at least a chance for a dead cat bounce higher until the US election on November 8, 2016.
Great calls, do you see it falling back down or breakin out?
ChartArt
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@1iafarmboy, Thank you. A forecast is really difficult now, because we went from very oversold to highly overbought in just a few days. I see at least one sharp profit taking decline next.
The issue is that FANG tech stocks (especially Facebook, Amazon and Google) were falling in the last days, because Silicon Valley doesn't like Trump (due to his anti-immigration agenda). Usually tech leads the market and they are the largest sector in the S&P 500. So again, I see next days higher odds for a decline.
ChartArt
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The seven day losing streak got (over?)-extended to eight down days in a row today: