The intermediate signal line (blue - graph 1) continues to approach zero, but the slope of the long term signal line (green - graph 1) is still negative and the slope of the 200 days simple moving average has turned negative. The new signal (graph 2) has not indicated that the market is crashing. This appears to be confirmed by the fact that despite all of the headwinds that the market appears to be facing and the limited upside potential the market has held within the trading range of 1101.54 and 1231.71 suggesting that the market has either found a floor or is waiting on a significant indicator (i.e. news out of Europe, third quarter results, etc.).
 |
| 09/30/2011 S&P 500 Chart 1 - Click To Enlarge |
 |
| 09/30/2011 S&P 500 Chart 2 - Click To Enlarge |
No comments:
Post a Comment