Since Jan 2018, bearish divergence has been forming on the monthly RSI and MACD. Last month, a bearish cross was seen on the ADX and DI (granted, without significant trend support). DJI is up nearly 500% since the market crash beginning in 2008 and correction is due. Technicals are seemingly similar prior to 2008 collapse with even worse divergence now.
The federal reserve can drop rates to zero and that still may not be enough temporary liquidity prevent the DJI from free fall. Quantitative easing takes time and should be reserved for complete economic collapse. Covid-19 will likely continue to devastate global tech and travel markets for months to come.
Lets not forget, markets need to blow off steam and corrections are necessary.
If the monthly 50MA at 23120 doesn't hold, look for deeper correction to 17934/128MA/0.5fib.
The federal reserve can drop rates to zero and that still may not be enough temporary liquidity prevent the DJI from free fall. Quantitative easing takes time and should be reserved for complete economic collapse. Covid-19 will likely continue to devastate global tech and travel markets for months to come.
Lets not forget, markets need to blow off steam and corrections are necessary.
If the monthly 50MA at 23120 doesn't hold, look for deeper correction to 17934/128MA/0.5fib.
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Call was nearly spot on for bottom. Cheers