In March 2015 I got a monthly sell signal at 2067,89.
For the moment the index is finding support around EMA 21 at 1960.
Click here for an explanation of EMA
Let's not underestimate the powerful long uptrend but some indicators point to the possibility of a deeper correction.
On the weekly chart the index fell under EMA 55 but so far EMA 21 is still holding above EMA 55, which is positive.
The hammer candle on 24/08/2015 confirms the support strength of EMA 144 around 1860.
Click here to find an explanation of the hammer candle
The lowest close of the last 5 weeks is still above the close of 13/10/2014 at 1887.
The rally attempt of last week was however rejected by EMA 55 resistance at 2024.
Moreover last week ended with a shooting star candle, representing the force of the bears.
Click here for an explanation of the shooting star candle
On the daily chart I got a clear sell signal on 19/08/2015 at 2079,61.
The index fell that day under EMA 55, EMA 21, EMA 8 and EMA 144.
Since 07/08/2015 EMA 21 was already lower than EMA 55, which was boding ill.
Today the daily trend remains in a clear downtrend.
Contrary to the weekly and monthly charts where the uptrend is still in place.
It is dangerous to fight the longer term.
That being said, the correction could go deeper or a longer sideways consolidation could impose itself.
Arturo Botticelli,
kiss4emm
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