In an excellent start to the New Year, the NYSE Composite (NYA) broke up thru both the last swing high and the now flat 50 day EMA (red line). The last few days of 2008 included both a Major Accumulation Day (Dec 17th, 2008) and a small cluster of ‘minor’ accumulations. Volume remains anemic and needs to pick up quickly to validate this bounce.
We could easily bounce to one of the first Fibs and 'undo' the forced, panic liquidation of the last few months of 2008 (Oct, Nov).
Beware, that this rally is already looking like the notorious Bear Wedges that occurred frequently throughout 2008.
Related Posts:
Bear Wedge: Breakout
Equities: Bear Wedge, First Cracks
Equities: Bear Wedge, Overbought, Looking Weak
Another Bear Wedge, Financials Overbought
Bear Wedge Breaks, Goldman, Lehman, Merril, Morgan: Cut to SELL
Cracks in the Bear Wedge
Monday, January 5, 2009
Good Start to the Year, Beware Bear Wedge
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2 comments:
Welcome back Ben, and hope you had a good festive season.
Please keep us posted on this possible bear wedge. I can't wait to get set short and everyone seems to think we are in for a bull move at least until Obamama has his honeymoon. I suspect a lot of longs could get caught with their pants down, because he won't get much of one !
Josh
Welcome back.
"Non-Borrowed Reserves of Depository Institutions" has snapped back into positive territory
http://research.stlouisfed.org/fred2/series/BOGNONBR
What do you think that means?
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