Oct 25, 2011 Tuesday
Markets are at an interesting juncture of daily indicators getting overdone while weekly indicators are just breaking out in terms of momentum.
Daily BP SPX
The Bullish Percentage is at 43.8 . But at botom the MACD is getting rather overdone.Note it has been climbing since its August 8 low. The bull move was cconfirmed with the higher low Oct 3-4. Also note that the indicator has moved out of its trading range which was bounded at 10 about 33.
I am using the gosh awful PC, is it any wonder MSFT still trades below 30 and DEll can't get a break. We normally use a MacPowerbook, the far superior machine. With this lousy Windows operating system, they deserve to be where they are. Anyway, I wa not able to copy the weekly chart but the MACD for it registers -10. The black line is just breaking to the upside. this results in a bit of a quandry. I would expect to see the market pull back a bit. hat may have started today, recall we were looking for that last Friday.
Again it would be good idea to put a succession of buy orders at lower levels. If the market pulls back there that is likely the last best chance to get in before the expected rally ends weeks to months from now.
This is why this mini bull market will not turn into a major bull market. It is just a bear market rally.
http://finance.yahoo.com/blogs/daily-ticker/debt-one-thing-killing-economy-says-mark-dow-172954424.html
Posted by: valentin Tristan Jr. | October 27, 2011 at 08:29 AM