On the left hand the Composite monthly which shows the same observation of a negative bias out of the ordinary. Trading below 200 month MA, 50 week has crossed 200 week MA's and here we even have broken below a longterm trendline. The Comp has a similar trading pattern the Nikkei had over 19 years - that means it is heading for new lows but it should at some point at least test the 2002 lows as well (more likely 2009). More sectors building lows though as the CRB has a weekly 13 now and Oil is in a week 12 count. Usually lows are made with intermarket-divergences as some sectors or regions make the lows earlier/later. Here for the Comp we also have the snap back potentialm as it trades far below monthly Bollingerbands as well. The SPX is in month 6 and week 10 count hence it still needs to trade lower to finish the current downleg.Monday, November 24, 2008
SPX technical outlook (part2)
On the left hand the Composite monthly which shows the same observation of a negative bias out of the ordinary. Trading below 200 month MA, 50 week has crossed 200 week MA's and here we even have broken below a longterm trendline. The Comp has a similar trading pattern the Nikkei had over 19 years - that means it is heading for new lows but it should at some point at least test the 2002 lows as well (more likely 2009). More sectors building lows though as the CRB has a weekly 13 now and Oil is in a week 12 count. Usually lows are made with intermarket-divergences as some sectors or regions make the lows earlier/later. Here for the Comp we also have the snap back potentialm as it trades far below monthly Bollingerbands as well. The SPX is in month 6 and week 10 count hence it still needs to trade lower to finish the current downleg.
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