All three major stock market indices are firmly below the 50 day moving average, what’s next?
Stock indices found little support from the 50 day moving average and all three indexes have tested the same line for overhead resistance. Prices between overhead resistance and the support coming from the 200 day moving average can lead to increased volatility. The prediction shown by the red cloud in the future adds to price uncertainty and potentially more bearishness before a bottom is found and an uptrend can be re-established.