I believe that the prices are moving higher but still in a corrective phase, but the ST has now moved out of OS and is also trending UP. This is a good sign in the short term, and we should take some covered profits and re-enter when conditions are favourable to short a bearish market. Remember that you should not worry too much about catching tops and bottoms but to recognize that a trend has changed.
Prices in the SPX is now right under the 60min. charts 75 MA. We should also remember that on a fundamental view, many of these equities will start reporting soon, and could show erratic behaviour. On a daily time frame, prices closing at this price level (1906.90) is no surprising as it is the resistance to an imaginary line that has placed support to price for the past year, and has been respected by price by way of a quick bounce right after the quick dip below 1900. This range should be watched carefully in the next few trading days to see if this holds up or breaks down.
On a lighter and bullish note, the weekly candle bar is sporting a reversal. This after 3 weeks of decline. I have mentioned in the FREE report last night that the signal needs to reverse or be at risk of pushing price to a CRASH scenario. While not totally bullish, the candle does give a bit of relief to bulls. The 200 Week MA is also inching higher and at 1782 level at this weeks closing.
SEN: Bearish
ST: UP
PA: NA
No comments:
Post a Comment