Charting the Markets: Leaving an Ugly September Behind
Never mind that the VIX is hovering near its lows of the year, or interest rates are at 23-year highs. Pay no attention to crude oil, which continues to reflect shortages around the world. We are starting a new month this week, ridding ourselves of the ugly September, which actually did not turn out as bad as many thought it would.
October is not going to be a picnic though, with earnings season starting and the war in Iran still raging on. The bar is set high for companies to produce strong revenue and growth, the past two quarters saw some impressive gains, but can it continue?
The chart shows a nice, clean blue bar now after a couple of teal bars. It is the first time in a six weeks the chart printed a higher high and higher low. It’s not a trend but a good start. MACD remains bearish, it’ll take several positive weeks to turn this indicator to bullish, the money flow is still positive but drifting sideways, ADX is trendless — no surprise with the choppy, sideways action.
We’re waiting for a breakout, probably to the upside barring any significant surprises.
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