The fact that the cash S&P is making new lows while the 5 and 10 day moving averages of the advance issues number are not is a bullish divergence. I think it is telling us that the move down into the 800-10 zone will be quick and will be reversed even more quickly.
10 comments:
As long as we stay below the 870 area then there is a good chance we test the 800 area later today.
But I'm not sure I agree with your outlook for a rally to 1050-1100 area. I see us staying below 1000 for some time.
EDS
S&P cash 840 low tested and holding?
SP held below 870 resistance on the late morning bounce. It now needs to fall below 840 otherwise we are prone to rally back to the morning highs.
EDS
Failed to breakdown. SP now testing resistance again. We either turn down from here (870'ish) or we'll surge higher.
EDS
Hi Carl,
It appears that a rounding bottom is beginning to form, and I'm also very close to a buy signal.
Thanks.
Kindest regards,
PM
My bias for a test of 800 has been canceled and I now favor a move towards 900 as long as we remain above 855.
EDS
So let me get this straight EDS is predicting the market will either go up or go down?
will you be bullish all the way down to 600?
If we go any lower my bias will again flip to the sell-side. Particularly as we enter that crucial time of day when the market is pressured ahead of possible margin selling. And as we say yesterday, selling at this time of day usually begets more selling.
EDS
it's different this time EDS, lol
TO DA MOON BABY
Rob
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