Hi folks,
I just wanted to do a quick update as to what I've been observing in the market over the past few weeks and what I'm looking for next.
Mid June of this year the market "bottomed" out and created a series of higher lows. The market enjoyed a very quick ascent higher making a near 25% gain from the middle of June into mid-August.
Since the rapid advance in the market and the "topping" out in mid August the market has failed to make any sort of sustainable higher low. One spot of interest recently was around September 6th. $NYMO & $NAMO chart started showing an extreme oversold condition. Around this time I shared the How to Use: $NYMO & $NAMO blog post.
This is what $NYMO & $NAMO charts looked like around this time:
After the market put in oversold lows in both $NYMO & $NAMO the market made a swift bounce. This is where a sustainable higher lows should have made sense.
Instead, after making a substantial bounce out of the oversold condition the market instead made a lower high. The bounce was quickly sold off and $NASDAQ lost its recent short term support Friday!
So what could be next for the markets?
The current trend remains down. One scenario that could play out is the market could potentially continue to zig-zag its way down and retest June Lows. This might not necessarily be a bad thing because it could give us more clues as to whether the market wants to continue lower or try to base around the price levels established earlier this year. Only time will tell.
How has the Art of Trading been trading through this recent volatility?
Take a look at our spreadsheet that covers all of our short term trades for 2022!
I hope you found this review helpful!
Cheers and Happy Trading!
Art of Trading
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