Thursday, June 10, 2010

Time to Test the Bear

Today's impressive thrust has turned many short term indicators around and suggests further upside in the near term. Points of interest:
  • The 21 d exp. m.a. dipped slightly below the 200 day ema. The interplay between the moving averages can be quite indicative of the market structure. It is not unusual for the market to change trend when important moving averages come in close proximity to each other. The 55 day moving average, and how the 21 and 200 day ema interact with it, will now play an important role in revealing the structure of the market.
  • As mentioned in the earlier post the ADX gave a short term buy signal.
  • The Transports have not been as weak as the S&P or the DOW and has found support at the S4 and S2 support vectors.
  • Both RSI and the MACD Histogram has been diverging from price levels since the May 25th low.
  • The initial low was on May 25th just after the Jupiter-Saturn conjunction and the Venus Pluto opposition. On June 8th Jupiter was conjunct Uranus. The next major astro-harmonic is June 26th. Markets could rally into this time frame or possible only until June 14th if weakness prevails.
  • Time Price Harmonics are June 1th @ 1110.00 and June 2 at 1130.00
This is definitely a time period to be cautious and to not let emotion cloud objectivity. Remember: MARKETS REALLY DO NOT KNOW OR CARE WHAT YOU THINK...but they are more than willing to indicate what they are thinking.
click to enlarge

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