We should soon see an upward move from the Indexes. Although our daily has turned down our 60min indicator has hit oversold levels and it can only push up the daily charts once it turns up out of OB range. 1450 would be the support for SPX.
To put this rally into context, I looked at the Russell Finacial Weekly Charts which I watch constantly but you can use the SPX aswell for an example. The Slow Stoch. crossed up indicating a trend change on June 4th, and recently we have come to another cross. This time to the downside. What is important here is not the turn but what happened to the prior trend. The trend that started June 4th Lasted 3.5 months. That is a long time of waiting if your a Bear. This time the Bulls might be calling foul if the trend last quite a while but since we are still in a weekly overbought range we cannot rule out a turn up in a few weeks. This will be evident in the daily chart when it bottoms and where the weekly Stoch. sits by then.
No comments:
Post a Comment