Overall I’m bearish on the markets until a few things happen on the chart below.
- ADX rolls over and +d1 moves higher over the -d1.
- RSI breaks downward trendline
- MACD moves over signal line and histogram goes positive.
However as the markets are quite oversold, I’m targeting the 1779 area as my first potential target based on 2 reasons. I’m currently flat right now as I don’t want to be long when the overall trend is down. Any bounces this week could be extremely violent.
- 50 day moving avg on daily
- 38.2% retracement level on 15 minute chart
