given that stocks have risen for nine months without a 10% correction, Tuesday sell off had got some people nervous. However, unless the bears manage to take out support around the 1115 level on the S&P 500 index and the VIX surges above its 200-day moving average, this decline is merely a temporary setback or another blip in the multi-month rally.
if the chart was right, then the bull market rally should continue in 2010. Although given that the market had has a very good run in 2009, the upcoming ride will include more bumps
CEM News - Market Outlook (the technical analysis of financial markets) for January 4, 2010: “…If Santa Claus should fail to call, then bears may come to Broad and Wall. The Santa Claus rally is traditionally a modest rally that occurs in the last five trading days of December and the first two trading days of January. With the S&P gave back all of the weekly gain in the final trading sessions of the year, traders who hoped for a Santa Clause rally this year were pretty much disappointing. Right now the question is: where will the market head from here? The chart below can provide some clues to the near-term direction of the market…” Subscribers, please login to read the rest.
Capital Essence’s CEM News - Market Outlook (the technical analysis of financial markets) for October 16, 2009: “…S&P followed through to the upside hence confirmed Wednesday’s bullish breakout. This is very encouraging and helped setting the stage for a test of the strong band of resistance between the 1100 to 1120 areas, or Wall Street year end target and the 50% Fibonacci retracement of the 2007 to 2009 bear market down-leg. However, not only that those are tough resistances to overcome, Money Flow measure did not confirm recent breakout as it continues to hold below the September peak. This bearish divergence warns…” Subscribers, please login to read the rest.
Capital Essence’s CEM News - Market Outlook (the technical analysis of financial markets) for September 8, 2009: “…In accordance to the Stock Trader’s Almanac, September is typically a tough one for Wall Street, with the Dow industrials, Nasdaq composite and S&P 500 all posting their biggest percentage losses for the year. Right now the question is “whether last week’s pullback is the beginning of a major down-leg or it’s just another small overbought correction?” A look at our proprietary trading indicators …” Subscribers, please login to read the rest.
