Overall market sentiment seemed to be positive with caution. Market seemed to wait for the FED announcement for the rate cut. After the announcement, it took a deep dive and then headed back up. Stayed positive except for the last 30 minutes where it nosedived. So what happened? I think it’s the basic people-being-cautious thing. They’re afraid to call a bottom too soon but on the other hand they are tired of seeing red and are willing to buy at prices they might think are good.
Looking at the overall sentiment, it would seem that the close today wasn’t a big negative. It might continue the slight upward momentum tomorrow. If it does, that will help restore investor confidence. It raelly is the investor confidence that drives the market up and not so much the trader confidence. Many traders are perfectly happy trading Put options and shorting stocks as long as there is market movement. But the investors that invest and buy big bundles of shiny shares with their money are the main market confidence source. That is my opinion.
Let’s see the DOW here.
MACD seems to be still showing the buy signal. However, the MACD is a lagging indicator and so we must be careful of using that alone. RSI is above oversold and was headed up until today where it seems to be down. However, this is mostly going to be reflecting the downturn on the last candle. The volume seems to be lower than yesterday. In the previous sharp day long selloff the volume seems to be higher than on the green day and seemed to rise. On this bar, the volume is less than yesterdays. So seems as if the selling pressure is slowly down, even if temporarily.
It’s below it’s MA(50) and MA(200) so technically still in a downtrend. Well, the MAs and the actual candles and chart going down shows the downtrend. Is it bottoming off? No one knows and now has been able to successully determine a formula for finding that bottoms and highs, but this might still be a safe level to buy if the momentum upward continues.