...looks like the SPX 500 will be moving higher at least to test major resistances in the VIX (inverted scale) and Institutional Core Index and the Nasdaq has an eleven year old overhead resistance level to test
...on the SPX 500, a Close above *1105 ideally up intraday from the *1080 trendline level on the hourly, would be a first indication that further upside is likely to test the 200-day MA *1115 with potential to reach towards the Aug Peak *1129
...failure to break through the Aug Peak *1129 will set up the index for further downside with the July Low *1011 taken out and diving through the *1000 Psych barrier into the medium to low 900 level
I'm following this guy (in the twitter sense) at the moment.
see what you think , he's not verbose , wont take long. http://stockmarket618.wordpress.com/
he just said "various currencies and equity indices continue
to give divergent and conflictual signs ... trends are
undergoing a major transition..."
heh I deliberately havent quoted his direction , you'll have to find it out yourself
...the SPX 500 posted a break-out above the September 1 High *1105 to a intraday High *1110 to close 5 up at *11104; weak as this break appears, it's still a break-out which could set up the index for the expected test of the 200-day MA current *1115 and the August Peak 1129 with potential to reach as high as *1140 before risk of a possible reversal sets in
...since the index closed below *1105, there is weakness within this advance but unless trading takes the index below the *1080 level, the index will continue to trade higher to the expected targets
...failure to break through the Aug Peak *1129 will set up the index for further downside with the July Low *1011 taken out and diving through the *1000 Psych barrier into the medium to low 900 level
Welcome back A77. If we don't break the 200 MA resistance level soon my prediction of 1250 by year end is just about out the window.
Thanks Belgarion
...the SPX 500 still struggles to challenge the 200-day MA and although up on the Close, could not extend beyond yesterdays High *1110; this ongoing weak undercurrent points to an increasing likelyhood of another test of the *1080/*1075 level early next week
...a successful defense of that level would motivate the market to rally towards the expected targets as outlined in the two previous updates
....failure to exceed the *1129/*1140 level would return the index to a negative outlook with targets outlined in the two previous updates
Today's chart illustrates how the recent rise in earnings as well as the recent stock market correction has impacted the current valuation of the stock market as measured by the price to earnings ratio (PE ratio). Generally speaking, when the PE ratio is high, stocks are considered to be expensive. When the PE ratio is low, stocks are considered to be inexpensive. From 1900 into the mid-1990s, the PE ratio tended to peak in the low to mid-20s (red line) and trough somewhere around seven (green line). The price investors were willing to pay for a dollar of earnings increased during the dot-com boom (late 1990s), surged even higher during the dot-com bust (early 2000s), and spiked to extraordinary levels during the financial crisis (late 2000s). As a result of the recent spike in corporate earnings as well as relatively lower stock prices (e.g. the S&P 500 currently trades 9% off its April 2010 highs) the PE ratio has dropped to a level that has not existed since the end of 1990.
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Originally Posted by Hoop
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