It looks like SPX has more room to the upside. The rally I was expecting yesterday happened today with high volume, sharp enough to turn Stochastics positive:
Notice MACD entering full positive territory, while prices are above the three DMA’s and Stochastics gives a buy signal. According to the criteria I tend to use (DMA’s, Stochastics and MACD) Short/Medium term trend is definitely up and I expect prices to reach 1,000/1,050 level before a more significant drop occurs.
This is still a very complicated market environment, so I would remind you not to be too greedy, taking lower risks than usual and scaling down positions once you see some profits.
I’m still working on date projections, but I repeat what I posted a couple of days ago: the spiral dominating the correction that started in 2007 seems to be getting weaker, which could mean that this first big leg down is over.
Thanks Moon, I agree with your post fwiw. Tomorrow should be interesting. :)
Comment by toad37 — December 16, 2008 @ 10:38 pm |
I agree with you at least on the short term. Intermediate term still needs some work.
http://precisionequityinvestments.blogspot.com/
RNJ
Comment by RNJ — December 17, 2008 @ 12:42 am |