The TSX Composite is still trading above support at the 11900 to 12000 level - see the weekly chart below. - Currently the simple 10-week moving average is too far below the simple 40-week moving average where these extreme deviations usually signal an over-sold condition or a pending reversal. Also the very slow stochastic has printed a trough at the over-sold 20 per cent level. The August 8 low is 11618 and should hold so don’t be a seller here
The Dow Industrials are still trading above support at the 10700 to 10900 level - see weekly chart below - Currently the 10 week MA has been below the 40 week moving average for 6-weeks and is setting up an over-sold condition or a pending reversal. We last saw this condition during the 2010 June – July correction. The very slow stochastic has printed a trough at the over-sold 20 per cent level. The August 8 low is 10589 and should hold so don’t be a seller here
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2 comments:
what setting do you use for the very slow stochastic. I can't seem to replicate the same very slow stochastic as your chart on the weekly charts
what setting do you use for the very slow stochastic. I can't seem to replicate the same very slow stochastic as your chart on the weekly charts
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