Markets Open Mixed, Pivot to Gains Post-Powell’s Address Consumers perceive a slowdown in the rapid economic upticks from recent months, casting a more cautious gaze
Taking Off or Crashing Down? Watkins' Aerial View of the Market
TG Watkins, creator of the Moxie Indicator, gives his analysis of what’s happening in the markets.
Hello everyone, TG Watkins here with an update on the markets and some news about the Moxie indicator. First and foremost, if you’re interested in anything I talk about regarding the Moxie indicator, the trading room, and more, make sure to head over to profitpilot.com.
Moxie Indicator on Stock Charts and TradingView
If you hadn’t heard, we have the Moxie indicator on stock charts, and we also offer it on TradingView. Whether you prefer a web-based version or need it on your mobile device, we’ve got you covered. If Think or Swim isn’t your platform of choice, you can pick it up at stocktarts.com or TradingView.
In the midst of a market that has seen a continuous downturn for over a week, several vital observations and movements are worth noting. Here’s an in-depth look at what’s happening:
The Bounce: The market has been declining for more than a week, but we’re now approaching a critical point – the daily 50, which is also coinciding with the top of a specific area. It’s an interesting convergence and seems to be a reasonable place for the price to bounce. However, don’t be misled into thinking this is a resumption of the uptrend. While a bounce is likely, it could be big or small, and it’s just the beginning of the next phase.
The Next Major Move: The bounce is not expected to be the next significant move in the market. Once the bounce occurs, the real test will be when the price comes back down. Will it hold the double bottom level, or will it continue downward? It would be perfectly normal for the price to go below the daily 50, so don’t be surprised if that happens. Be on the lookout for either a retest of the low area or possibly new lows.
Positive Divergences: The 15-minute time frame is showing some positive divergences. It appears that the price wants to stay over the 15-minute 50, but it’s worth remembering that there have been several instances where it has tried and failed to maintain this level. If this bounce is to gain momentum, it must stay over the 15-minute 50 for a sustained period.
Caution on Both Ends: While shorting may not seem like a wise move right now, one must also be cautious on the upward trend. The market is in a sensitive phase, and though an upward move is expected, it requires careful navigation as we’re not out of the woods yet.
The Broader Picture: Consider the entire landscape of the market and be mindful of potential pullbacks and retests. The current market configuration suggests that a bounce is due, followed by a period of uncertainty where new lows could be established. Watching the 15-minute 50, staying informed, and being responsive to changes will be key strategies moving forward.
Navigating the current market requires a clear understanding of the trends, a keen eye on key indicators like the Moxie, and the flexibility to respond to unexpected shifts. While the bounce is a significant point of interest, it’s the subsequent movements that will define the market’s direction in the coming weeks.
~ TG Watkins, Simpler Trading
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