Oil and the Equity Markets
Snippet from Chartworks January 13, 2016
The weekly advance/decline line of the NYSE is generating a new warning. It violated its 40-week moving average in August. This was followed by a bounce to a lower high, testing the moving average from the lower side as it was rolling over. It is now in the process of taking out the August support.
In the last two decades a violation of support or resistance has severed as a confirmation of a new trend. The last such break of a support was in January 2008. It was followed with a buy signal in April 2009.
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