During the long uptrend in the previous cycle we saw a heavy dip
in Q2 2006 although this time the dip in S&P has been larger at
that time. The turnaround came around mid-July after having begun
the fall in mid-April.
In the
Swedish OMX (^OMX)index which I am more
familiar with the dip was larger at that time, down from 1060 to
900. This time in 2010, the OMX peaked at 1050 and has so far gone
down to 944 as the lowest point, since then the index has begun to
show higher lows.
Certainly all cycles have a different nature but if one raise
the head from the one minute charts for a moment and think of the
bigger picture, logically with less unemployment and better company
results coming out, it would be a bit of a surprise if this cycle
has already peaked.
These were just some of my thoughts. I know well that we do not
try to predict the market but we act according to what the charts
tell us. I just would not be too surprised if we see an end to the
current washout by mid-July when the Q2 reports are coming out.
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A bit of history
Posted by etcbari on 9th of Jun 2010 at 05:16 am
During the long uptrend in the previous cycle we saw a heavy dip in Q2 2006 although this time the dip in S&P has been larger at that time. The turnaround came around mid-July after having begun the fall in mid-April.
In the Swedish OMX (^OMX)index which I am more familiar with the dip was larger at that time, down from 1060 to 900. This time in 2010, the OMX peaked at 1050 and has so far gone down to 944 as the lowest point, since then the index has begun to show higher lows.
Certainly all cycles have a different nature but if one raise the head from the one minute charts for a moment and think of the bigger picture, logically with less unemployment and better company results coming out, it would be a bit of a surprise if this cycle has already peaked.
These were just some of my thoughts. I know well that we do not try to predict the market but we act according to what the charts tell us. I just would not be too surprised if we see an end to the current washout by mid-July when the Q2 reports are coming out.