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By Thetrader.se
Late Friday afternoon SPX and NDX charts below.
Both reaching some short term support levels, just in time for people to start shorting this, and chasing it higher again, all in order to confuse people.
Charts Bloomberg
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The NDX chart has all the looks of a secondary reaction within a primary bull market. Sharp declines are textbook action of secondary reactions.
70% of primary bull markets defined according the Dow Theory end up with profits. So the odds favor the ultimate resumption of the primary bullish trend.
As per Dow Theory the stock market is in a secondary reaction. This implies that the odds strongly favor the resumption of the primary bull market. While it may last some more days or even some weeks, I wouldn't short this market.
Furthermore, a secondary reaction is good news for latecomers since it may provide a good risk reward ratio entry point.
For those already long stocks, a secondary reaction is good news since it will help raise the trailing stop hence locking in profits.
More on the secondary reaction and its implications for investors here:
http://www.dowtheoryinvestment.com/2012/10/dow-theory-update-for-oct-10-...
This market is collapsing, as top line tech, retail and industrial surprise misses suddenly come into sharper investor focus: near-term downside targets minus 2-3% at DJIA 13k, SPX 1400, NDX 2600, are just 2-3 days away, and then down another 2%-plus when that support fails. The downside leader NDX pointing to 2500 down 6.6% is not good...especially for NoBama...
Lookie here: http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=ndx&insttype=&freq=1&show=&time=8
Benny will buy this week to keep the props propped ever upward to gaurantee that The Dictator will get re-elected in order to redistribute all that wealth that Benny is supposedly creating out of socialist-exhaled air.
My charts don't have us at support, for the last three weeks the s and P has hit a lower high, I expect it to hit a lower low again this week. emu hit the slow long term down trend top on thursday.
If I get one more home depot ad here I am shorting the hell out of it
Stop the ads!
Try downloading DNT+...it may help.....:http://www.abine.com/
I don't see it that way. The Nasdaq went through support, very critical long term support. The chart has the close on the line but only because the line lops off the bottom of the May low. On a log chart that low is part of support going back to 2009. That support died today. Can they revive it? They'd better hope so. Looks a little closer on the S&P with about 3% until it hits the death support but still below shorter term support by my calculations. They have a day or two at most to turn this around before there's a significant downturn (and now the Bernake Put has a stake through its heart). Over the years I've been awed by their ability to come up with a stick save when needed but today was an ominous close. Don't sweep pennies in front of the steamroller on Monday.
The last two debate days saw the market get goosed. Until Warren Buffet gets let off the hook for his Dow 14,000 prediction, I am inclined to not bet against the market.
those are POWERFUL moves higher...and on what data i ask? very little. sorry but i don't by the spittle that the Fed is doing this. buy in May and stay, stay, stay? that's a new one. they don't call them the summer doldrums for nothing. i think cheap nat gas had a lot to do with that market move higher...or should i say nat gas suddenly NOT being cheap. that is a HUGE market folks. when that thing collapsed it gave utilities like Duke which store massive quantities "free money" as it were. and of course their stock price took off as a consequence. if the price collapses again i expect to see nat gas tech to really blossom...possibly as soon as next year. http://seekingalpha.com/symbol/grid got crushed today with all the rest of tech. having said that utilities and telecom have really had great years this year....especially those based in the South. if T Boone hooks up with Duke and Southern...look out New York!
I will start buying/shorting again when it cannot be front run.
Sigh...
The morons at the Fed will lift SPX above this support level and above its 50 DMA as re-electing Obama is far more important than the economy and the capital markets.
- Capital Markets destroyed - check
- All goverment statistics manipulated - check
- All banks loaded with cash - check
- All small investors butchered - check
However it may change after the election....
"Both reaching some short term support levels, just in time for people to start shorting this, and chasing it higher again, all in order to confuse people."
Huh?
People shorting when it reaches support levels versus the top, then chasing the pops up, then shorting at support and losing and getting frustrated/confused.
180 degree bad timing.
Too many of these wall street traders are taking the half day off with their hookers and dope. This guy can't put two words together.
silver also hanging on a TL http://twitpic.com/b5l9mp/full
EURUSD has hung on to its breakout and is still above 1.30+
Someone noted the miners moving up today against the falling many and HUI:SPX ratio also moving up, also promsiing.
however, monday/tuesday will be violent either way.
The late lemming is the only liquidity you need in these markets
you talkin about Bernanke?
those MBS purchases are going to be another 'winner' for the Fed
talk about bottom of the barrel investing, the Fed scrapes dog-doo off Blankfein and Dimons shoes and calls it national economic policy
you've really gotta be smokin something to follow Bernankes thinking nowadays, Krugmans doing crack i hear, his writings are incoherent