Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Buzz and Banter



Good morning fellow minyans. Yesterday Toddo pointed out the triple bottom breakdown in the S&P 500 (5-point chart), and I wanted to give you another related chart that I'm following as well. Below is the 10-point chart of the SPX. It gives a slightly more defined picture of the range we've been in since June.

On this chart a tick at 960 breaks a double bottom, and would be a breakdown from the range we've been stuck in. The 5-point chart of the SPX looks, in my humble opinion, like a topping chart more than a consolidation chart, and the breakdown Toddo brought up confirms that. If, and I stress if, the 960 level on the 10-point chart adds further confirmation to that breakdown, then I would imagine some of the more bullish technicians out there may have to reevaluate whether this really is simply a consolidation phase before a potential move higher. We'll see.

As for our other main indicators we still have our long-term and intermediate indicators positive (in Xs), though they've lost some ground over the past few sessions. The short-term indicators remain negative (in Os). The cross-currents are dangerous right now... for both bulls and bears.

Best of luck today and I'll be back with more later as I try to get myself back up to speed after the time off.

No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos