THE DOT - if this turns orange or red be alert

Thursday, March 10, 2011

SPX update

SPX is breaking below the trend support and the market closes almost exactly on the 55MA at 1295 which is a sign of trouble as the NDX closed clearly below. As said earlier the countertrends whenever weekly golden crosses occur are a regular pattern as the 50 week MA is crossing the 200MA the coming week Keep.selling any strength from now on adding to the shorts as the NDX has activated the H&S pattern. The SPX has already lost 4% from the top since the Jupiter Saturn heliocentric opposition and last time it went for a 25% drop in 1990. I am not sure yet how low we go this time as Hedge Funds are long at as we can see for Gold right now a little liquidation has started but we are far away from any oversold market right now but 1275 is a good short term support but we should expect a drop to the 200 MA over time as it represents a 50% drop from the summer lows. The FED will fight the bears fierrceful as if they also loose the stock game they become obsolete and Wallstreet will be in big trouble if another crash occurs - ultimate trouble.

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