Hoop, as a very amateur technician I thought I might share this link with you
http://www.moneysense.ca/2010/02/09/...he-next-crash/
The guy at the post says the 125MA/365MA is a useful indicator of predicting crashes.
Now, I haven't the foggiest idea whether he is right or not about "crashes", but it is very interesting to note that using the above shorter 125 day chart lines, the maximum gap for the DJIA over the 125EMA has been about 1000, and about 1100 for the 125MA (just the simple moving average) . After that, we seem to get some corrections, as has indeed happened since 2010 on regular occurrences.
At the moment, we are around 850 over the 125EMA and around 1050 for the 125 day simple moving average.
Do you read much into the moving averages for the indices like this? I have chosen the Dow, because it seems to me that if there is a bigger correction coming, it will probably start there first.
http://finance.yahoo.com/echarts?s=%...rce=undefined;