Monday, February 08, 2010
Here is some more evidence that Friday's low ended the correction which started from the 1148 high in the ES. These two charts show the 5 day (purple line) and 10 day (red line) moving averages of the number of issues traded on the New York Stock Exchange which advance in price. Notice that both moving averages were higher last Thursday and Friday than at their low points of the previous week - yet the S&P 500 was lower than its previous week's low. These are bullish divergences. Coming as they have after these indicators dropped to "over sold" levels these divergences are more evidence that the correction has been completed.