13th September 2011
Hi Entrep
It seems we all have different views chartwise...eh.....who said drawing chart lines was easy
My chart below started off simple but I have managed to complicate it to reinforce my bearish view.
My easy answer is "It's Ugly.
The chart below shows that the small 1120 support has become an extremely important level...if it breaks you can kiss your investor arse goodbye.
My view is bearish because
....1120 is a weak support level it had a little influence during the bull correction in the June 2010 then August 2010 but nothing to speak of before that.
....When Bollinger Bands squeeze up (purple arrows) they indicate a change of trend momentum often a reverse trend
....The Volume shows a possible concave trend occurring indicating another increase in volume in the near future ,,,more chance it being a sell volume increase and especially so if the 1120 support fails.
....I normally don't get too hung up on primary trend lines breaking because they do during some bull market corrections...however the S&P 500 broke a support level level as well as followed the leaders ASX Europe Asia markets down.
....I added the 30yr treasury bonds as well ..the yield fall shows money flowing towards them (a perceived safe haven) This flow of money out of the Equity Markets causes those markets to lose momentum. The last time they were this low was late January 2009 during the last phase of the bear... the capitulation phase
.
....S&P500 as well as many other indexes are technically broken. The S&P has to have a big climb to get out of this bear hole...Above the orange 1280 level....a big ask atm.
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