These moving averages are 'dynamic' reflecting the stretching of time. Here is the $SPX from mid '06 to the present. The effects of the recent 'flash crash' are evident, and suggests a market turning down. In spite of the capitulation day we seem to have had, the rally we are starting now will probably be rather short in duration, and this chart strongly suggests the Bear is back...
The only question is, of course, the coming rally's duration. The two possibilities seem to be that the rally stops quickly at the current downtrend line, which would be very short indeed. The other possibility is that we see some kind of double top scenario with the April high. We'll have to watch the indicators closely to see which happens...
No comments:
Post a Comment