Monday, April 19, 2010

SSE Composite Index SSE

The chart below shows the SSE since the 2007 peak. The Index has been able to retrace a little over 38.2 percent of the decline, albeit briefly and has subsequently been unable to surpass the 38.2 level. Today's (April 19th) break to the downside of the symmetrical triangle formation does not bode well for prices unless an immediate return into the triangle formation is accomplished--which would suggest a false breakdown and then a robust ensuing break out to the upside. However momentum indicators suggest that the breakdown is valid.

A breakdown of the SSE is not a healthy development in the global recovery scenario.

No comments: