Market Conditions with Dr. Bauer
As you know, we use the 5-Day and 13-Day Exponential Moving Average as a gauge of measuring momentum in the markets. Typically, when the 5-Day falls below the 13-Day line, it can signal that a specific index has fallen into a negative momentum cycle.
This week, the S&P 500 has been able to buck the negative trend last week. However, the Russell 2000 remains locked in a period of severe swings and increased volatility.
The chart below shows that the Russell 2000 is still seeing a negative trend for this oscillator. However, conditions do appear to be improving.
Exercise caution heading into the weekend.
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