The recent doom and gloom can make it seem like the Market has suffered potentially fatal setbacks. However, a glance at a monthly chart of the S&P 500 Index shows a pretty normal-sized correction, based on recent swings.
It is worth noting, however, that the market has had four down months, and the MACD Indicator looks like it is rolling over. So, a move up here would certainly help Bulls feel more confident.
Moving down to a weekly chart of the S&P 500 Index, it is easy to see that a similar pattern occurred last year. At that time, the Triangle pattern resolved upwards. However, Triangles are often considered continuation patterns … and last year's Triangle came during a big move up. Arguably, this year's Triangle comes after breaking last year's up-trend. As a result, some traders will assume that it is more likely for the pattern resolve downwards.
Zooming in a little closer to a daily chart … it shows a lot of movement with little real change. The magenta zigzag indicator highlights moves of at least 5%. Moreover, price has crossed the 1160 level about a dozen times during September.
That kind of price action can create whipsaws. However, the next chart shows that there is a clearly defined range; and when price finally makes an extended move beyond it, traders will likely look for an entry.
In technical trading, price is the primary indicator. The market will tell you what's working.
Sure — things could always be worse, and they could always be better. Looking at 2003-2011 makes this summer’s volatility look very bad.
As does including the 90’s bull market.
(Of course, this summer’s activity doesn’t quality as a crash like the tech crash. But other than that, this looks like a significantly sized trend.)
—–
PING:
TITLE: How can the brand identity for the sale of land
URL: http://kanzputra.com/how-can-the-brand-identity-for-the-sale-of-land.html
IP: 184.173.245.22
BLOG NAME: kanzputra.com
DATE: 12/16/2011 02:56:32 AM
There are several advantages of introducing the solution of the sales force for your brand, the more we approach the Christmas period. To ensure that the brand stands out from the crowd, service solutions in the region to contribute to a strong identit…
—–
PING:
TITLE: How can the brand identity for the sale of land
URL: http://kanzputra.com/how-can-the-brand-identity-for-the-sale-of-land.html
IP: 184.173.245.22
BLOG NAME: kanzputra.com
DATE: 12/16/2011 02:55:32 AM
There are several advantages of introducing the solution of the sales force for your brand, the more we approach the Christmas period. To ensure that the brand stands out from the crowd, service solutions in the region to contribute to a strong identit…