Fedex- Overnight
Markets are hovering around the 20 day still (orange line). There are doji’s forming (trade professor: candlesticks) which are mildly bearish signs of indecision. We are still in a technically constructive market so stocks look good. We don’t know how long this positive setup will last though because of the deceleration out of China and U.S in August. Fedex lowered forecasts today. Being that they are a major transportation company and therefore a bellweather of economic activity, this does not bode well for the stock market. But, the Fed announced yesterday that they would backstop any downturn in the economy with another round of quantitative easing. This makes stock market analysis a nightmare doesn’t it? Portfolio management and investment education go right out the window here. Well, all you can do is filter out the news and follow the trend- which is up.
S&P 500: Above all moving averages (bullish) but stumbling on the 20 (short term bearish). Volume is low (mildy bearish). Look for a hold and break above the 20 (orange line) Another doji at 85 (green looking cross which signals indecision)
