Sunday, November 6, 2011

S&P 500 Set For Intermediate Decline

It appears from the market senitiment signal chart below that the market is set to decline.  The intermediate signal (blue signal line) has peaked and is declining.  This indicates that there should be some "Tentative Buy" (Oracole 401K Investment Strategy) opportunities over the next few weeks to come.  I see a decline below 1,206 (or a 3.75% decline) this week as a signifcant "Tentative Buy" opportunity. The slope of the long term signal line (green) is positive, but it has not yet fully confirmed.  However, the "Super Signal" is still indicating that it is safe to buy (see chart 2 below).

Chart 1: 11/04/2011 S&P500 Market Sentiment (Click To Enlarge)
Chart 2: 11/04/2011 S&P 500 "Super Signal" (Click To Enlarge)

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