The NYSE Composite (NYA) is at resistance. A pullback is in order. It looks like a cluster of Major Accumulation Days, therefore any weakness is likely to be followed by a rally to the declining 50 day EMA (red line). This is a counter trend rally and a short covering squeeze. This is the kind of Bear Market Rally that will rip your face off (before plunging to new lows).
Friday, March 13, 2009
Two Major Accumulation Days Signal Strength
The NYSE Composite (NYA) is at resistance. A pullback is in order. It looks like a cluster of Major Accumulation Days, therefore any weakness is likely to be followed by a rally to the declining 50 day EMA (red line). This is a counter trend rally and a short covering squeeze. This is the kind of Bear Market Rally that will rip your face off (before plunging to new lows).
These charts also show the possible legs of this rally:
ReplyDelete75 for SDS
http://kennystechnicalanalysisblog.blogspot.com/
800 is a minimum target for the s&p
(1000 and 900 acted previously as resistance)
http://www.dshort.com/charts/bear-recoveries.html?current-bear
the rally will imo ignore 'standard' negative news (versus exceptional negative news) and extend to a monsterrally (1000 for the s&p) if we get more (imagined or real, false or true) 'confirmation' that the economic-financial situation is stabilising
Great call again (intraday pullback).
ReplyDeleteIt's not only the nyse that might rally to the 50 days ma, the 50 days ma of the s&p coincides with 800:
http://quotes.ino.com/chart/history.gif?s=CME_INX&t=l&w=15&a=50&v=d12
@ Ninja
ReplyDeleteNICE. Hope it plays out, I'm long.
@ None
Glad someone else saw that dshort graph. I posted on ES my 'underthinking' analysis that we had a few more percent (at least) to go back up based on that chart. I didn't get pooh-poohed, but I did get a a lot of 'whataboutthisandthatandthisandthat'
Looks like you nailed this one. Well done.
ReplyDelete