Stock Market Highlights - Week 28
After retesting 17600, the short-term stochastic (STO) indicators bounced off STO 20 and it is now hovering over 40s. We still see that the longer term fourteen day STO is still a bit oversold. The bounce at the 200 DMA has been less then spectacular. I'd expect more downward prices unless we break the 17800 level.
The STO levels suggest that the bounce was less than strong. Even when they are showing it is not overbought, they are declining. We can see that the STO levels (five day) peaked at 50 and then declined to 30s versus a peak above 20 in the fourteen week STO indicator and a decline at 17 by the end of the week. This suggests weakness in the markets.