Monday Nov 7, 2011
NYSE Summation Index
It is hard to imagine the Summation Index improving much further here. I would expect a pullback. We have outlined the last two weeks that the weekly MACD is turing up while the daily is maxed out. We probably need to see the US markets retreat this week to let off some pressure.
SPX
FIB retracements suggest 1184. That implies a throw under the 50 day EMA. Are there some more nervous traders the market can shake out? Is someone still depending on a sell signal if the market closes below its 50 bar MA?
I'd say this is a buying opportunity. Please a succession of orders evenly spaced at lower and lower levels. Every one seems to have their favorite stock or index. But you must place the orders below the market to buy the market!
Greece re organized today, Italy is next, can Spain and Portugal be far behind, Merket and Sarkozy continue to lose support. It's negative social mood on the march, just as Mubarak.
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