As part of the most recent observations on the boil up (melt up is so QE1) in the S&P, we find something quite interesting. A quick glance at the chart below shows the general market 45% climb since Bernanke's leak of QE2 in August, as well as the market's 10 day (purple line) and 50 day (green line) moving averages. As a point of reference the S&P has been above the 10 day average for 30 days straight, and above the 50 day average for 92 days straight. What is remarkable are some statistical findings as pertain to the average's movement with respect to the SMAs.Sentiment Trader points out that while as part of the recent surge in the S&P, the market has gone for "92 days without closing below its 50-day average, which has been matched only 17 other times since 1928." Where it gets scary, is that as pointed out, the market has not closed below the 10 DMA once during the past 30 days. And as Sentiment Trader notes, "this has never happened before, in 82 years of history." Congratulations to the Centrally Planned Socialist States of America: its Chairman has just made the Guinness Book of Manipulation Records.
Thursday, January 13, 2011
1. Trouble is accumulating around the world due to rising commodities and the momentum of more upside potential for commodities as well-the solar eclipse brought very bad omen as mio. of dead fish and birds showed up with some pathetic explanations from mass media as plenty deep ground earthquakes are shaking the planet. Riots around the world have start and that is just the very beginning as late this year through 2015 şt will be a paeak period for any such activity in decades.
Submitted by Tyler Durden on 01/13/2011 10:02 -0500
Posted by getagrip at 8:49 AM