Positive closing of the day will increase the divergence between the RSI index and the price. At the moment, the index DJI adds to the Premarket. Closing of the day in with growth will allow to talk about exhaustion of the downward impulse and can precede a substantial reversal in the direction to the growth.
Besides this there are a few things that allow us to remain optimistic about the stock markets, at least for a while. The “Fear Index” VIX has been fluctuating around 20, for over a month now. The new wave of declining markets, instigated on November 09, has not affected the fear of market participants.
The stability of gold prices illustrates the same. Since early October, the gold’s price fluctuations mirror the dynamics of the dollar. Yesterday’s market decline occurred amid the weakening of gold.
The Chinese yuan retains its strength, showing increase since the beginning of the day, which in turn allows us to talk about a partial drawdown of the market, in which some assets have been declining but others have retained their strength.
Besides this there are a few things that allow us to remain optimistic about the stock markets, at least for a while. The “Fear Index” VIX has been fluctuating around 20, for over a month now. The new wave of declining markets, instigated on November 09, has not affected the fear of market participants.
The stability of gold prices illustrates the same. Since early October, the gold’s price fluctuations mirror the dynamics of the dollar. Yesterday’s market decline occurred amid the weakening of gold.
The Chinese yuan retains its strength, showing increase since the beginning of the day, which in turn allows us to talk about a partial drawdown of the market, in which some assets have been declining but others have retained their strength.