Luna $ Ticks

October 29, 2008

More signs of a bottom

Filed under: Trading SPX SPY — moontrader @ 4:42 pm

This is a quick post, more of an update on the previous one, written this morning.
In spite of today’s sell-off in the last minutes, SPY closed above DMA 3×3, which adds up to to the bottom in place scenario:

Tomorrow DMA 3×3 will be even lower, at 87.50, so there’s plenty of room for a retracement without changing the scenario. Today SPY even tried to flirt above DMA 7×5 but didn’t make it. This sort of weakness is normal during reversals. I expect SPY to close above DMA 7×5 in the next days.

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2 Comments »

  1. Moon –

    What do you see in the recent closes over DMA 3×3 that are different than those that have occured at other times during the month? Is it due to the crossovers on stochs and MACD?

    With the DMA alone, the market looks to be in congestion to me.

    Thanks for your answer. Excellent blog and analysis, much appreciated.

    Donna

    Comment by Donna — October 30, 2008 @ 11:03 am | Reply

  2. Donna, exactly, a close above DMA 3×3 with the crossovers on MACD and Stochastics.
    Yes, DMA alone the market is in congestion. I just posted a date projection for this rally to hold.

    Comment by moontrader — October 30, 2008 @ 12:02 pm | Reply


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