Dow Crashes: Why it May be Time to Be Greedy

04:33 10/11/2018

For a while, it looked like the Dow Jones could climb back into the green and stay there. But that didn’t last long at all. Not only are we nearing elections, but bond yields spiked. Fear is spiking. Volatility is exploding. And the Dow sank 1,400 points in two days. In fact, the Dow is now below its 50- and 200-day moving averages. And from what I can see, there’s no support until 24,000. That’s another 1,052 points lower. The fear gauge, the famed VIX just jumped from 11 to 25.74 in just days. We’re now above the VIX high of March 2018. And should chaos continue, we could test the February high of 50. Granted, it’s doom and gloom, but pay close attention to markets technical patterns. Not only is the Dow Jones outside its lower Bollinger Band (2,20), Williams’ %R and RSI are now deep in oversold territory. The last time it was this severe was June 2018. That was before the market recovered from 24,000 to nearly 27,000.

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