Chart of the Day: Expect a Test – Private Wealth Advisors

Thursday, October 18, 2018

Chart of the Day: Expect a Test

by Marty Mazorra CFP®, ChFC®

Founder & Co-Chief Investment Officer

Yeah, a test of the recent low (normal btw) — at a minimum — is highly likely. At least that’s what the graph I marked up last evening points to.

The ovals in the top panel capture previous Dow bottoms during the attention-grabbing declines so far this year. In the bottom panel I highlight on balance volume for the same period.

You can see what volume looked like this year when the first bounce didn’t hold (red ovals) — a sort of saw tooth pattern — versus the one time it did (green) — a straight shot higher.

Note the current pattern:

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Marty Mazorra CFP®, ChFC®

Founder & Co-CIO

is the author of "Making Lemonade: A Bright View on Investing, on Financial Markets and on the Economy" and "Leaving Liberty?: Essays on Politics and Free Market Thinking".

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