10/27/2020 -- Since June, energy has been down, down, down. It's been riding down our favorite near-term trend identification measure, the 21-day EMA. Where does it stop? There are certainly fundamentals with reduced energy use due to COVID-19. But on the technical analysis side, while oscillators like the daily stochastic & RSI emit oversold conditions, & price is at the lower daily BB 2.0 SD,, those aren't automatic reversal points. We want to see a well-qualified demand zone. In the 120/130m chart there are two a bit further down (yellow regions).
Mitch ran through analysis on the QQQ...Here are his findings:
The 21-day EMA and the 50-day SMA are 2 key metrics to see if the NASDAQ remain intact.
They are backdropped by the orange demand zone further down, which coincides with the 100-day SMA.
MARKET ENVIRONMENT NOTE: There is a political battle in Congress about another COVID-relief plan. Speaker Pelosi has set tonight at midnight as the deadline for coming to an agreement-in-principle about what's on the table now in order to pass a bill before the election. This is being nervously watched by the media & market observers.