Zoom testing convoluted level

٢٠ نوفمبر ٢٠٢٠

Technical analysis

• From October 19th, we have seen a 26-trading-day downtrend. The second attempt to break the trend was at the 38.2% fibonacci retracement level, which failed.
  
• We are now trying to test the same downtrend line (Red arrow), while also testing the 61.8% fibonacci retracement level.
  
• The 50sma which is converging with the 50% Fib; which seems to have a heavy resistance weight.
  
• OBV is in a range.
  

Rotation analysis

• Cloud/WFH stocks saw a big rally in response to the pandemic. With vaccine news, the gave some of it back.
  
• Looking at the ratio of Value vs Growth in the SPX, we still haven't broken the uptrend; indicating strength is still in play in growth.
  
• I expect the small caps to continue to outperform if we get the stimulus that is anticipated in the next couple of months.