MARKET BECOMES UNDER PRESSURE AFTER 3+ MONTHS
The market rally came under pressure as China coronavirus fears grew. The Dow Jones and other major indexes suffered significant losses, despite strong earnings from the likes of Apple (AAPL), Tesla (TSLA), Amazon.com (AMZN), Microsoft (MSFT) and ServiceNow (NOW).
To be more specific, Dow Jones crossed below 50MA with heavy selling pressure (volume). SP500 is near its 50MA. We have to see if this Moving Average will act as support.
I believe that the 3+ month uptrend has finally ended. I will wait to see a more down trend or a sideways pattern. But definitely, I would not buy at this period and I will wait.
Wait a short correction and there will be a new opportunity for buying.
To be more specific, Dow Jones crossed below 50MA with heavy selling pressure (volume). SP500 is near its 50MA. We have to see if this Moving Average will act as support.
I believe that the 3+ month uptrend has finally ended. I will wait to see a more down trend or a sideways pattern. But definitely, I would not buy at this period and I will wait.
Wait a short correction and there will be a new opportunity for buying.