Thursday, March 11, 2010
The weekly Comp (below is the monthly chart) is at a very crucial point as we have approached the strong resistance of 2 crossing lines at the 2370 area with a weekly 13 count in progress this week. Furthermore the oversold indicators have returned to neutral or overbought levels. The Comp follows so far the Nikkei path of a lost decade actually 12 years or inflation adjusted rather 15 years approx. - it will be crucial to see if the market hold this 2008 high in a longer context after we made a higher low 1 year ago compared to the 2002 low. For now the odds are very high the current resistance will hold and trigger a sell off. In the last 20 years now rally lasted no longer than 13 months except for the 98-2000 insanity, which had to give back all profits right after. Interestingly all zero years 80. 90, 00 have a negative bias for the Comp and I have no doubt that 10 will follow this legacy.
Posted by getagrip at 11:03 AM