DJI Analysis 31/10/2018

Just a quick update on what i see happening in the short term for the DJI.

As you can see the DJI has had a very volatile period recently, mostly of sell side action. Although i personally believe this is going to change for the short term, and i have my reasoning for that. The blackout period for corporate buybacks is soon to be over, with that phase coming to an end, this will bring a limited, but still a new amount of liquidity which can be used to lift the prices of stocks once again. Due to this i think the DJI could rally up for the short term, although i do not think it will have enough momentum to reach new highs. I believe the DJI has double topped.

The monthly chart for the DJI does not look healthy either. With a bearish engulfing candle followed by a bearish cross over on the MACD, it does not imply that the sell side of the stock market is over, actually looks like its just getting started.

With Quantitative Tightening and rising rates i think this will have its toll on the stock market, but it will be delayed, and it will be too late before people realise what is happening. Fundamentally the economy is on edge. Lets see how it plays out. Upvotes and follows are greatly appreciated.

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Disclaimer: I am not a financial advisor and any of my content should not be taken as financial advice. The information and content provided is purely my own thoughts and intended for informational and entertainment purposes only. This is not investment advice. If you want to invest you should consider consulting with a professional beforehand.