Last night’s joint US/British/French military operation in Syria is over and no amount of arguments for/against it will change that fact. Prior to that and as of Friday’s close, the US Major Indices were still mired inside their respective consolidation zones near their 50-day MA, as shown on the following 1-year and 2-month daily charts.
So how will markets react?
In the short term, watch for any 20 MA crossover (and hold) above the 50 MA on any market rally next week and beyond, as one signal of potential sustainable equity strength in the weeks ahead.
Otherwise, a drop and hold below this year’s lows could produce quite a plunge in this market.
In either event, keep an eye on the rate-of-change indicator for signs of an acceleration of the speed in either direction (I’ve shown an input value of one day on these charts, so you get the idea).
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