The 30 min SPX chart is in a tight downtrend channel at the
bottom of the channel. However there is no positive divergence at
all in the MACD. This tells me that when a better bounce does
come, it will be sold as well, then on the next pullback if there
is divergence, then maybe it will be something intersting.
Trend is strongly down
There are no signs of bullish behavior either, and no
signs of bulls really surrendering in size. Fund managers have to
give end of 2008 redeemers the remainder of their money back
at month-end so they will have to fold their tents by mid March. So
on that technical side we really should see a high volume washout
first (but anything can happen). Note the gov't lives on tax
revenues so they will want to try to engineer a rally by early
April to try to avoid a tax revolt. But I think resentment against
taxes is a real problem they had better recognize, it will probably
keep growing.
SPX 30 min chart.png One coment: The 30
Posted by matt on 2nd of Mar 2009 at 03:30 pm
One coment:
The 30 min SPX chart is in a tight downtrend channel at the bottom of the channel. However there is no positive divergence at all in the MACD. This tells me that when a better bounce does come, it will be sold as well, then on the next pullback if there is divergence, then maybe it will be something intersting. Trend is strongly down
I see you answered my
Posted by PA on 2nd of Mar 2009 at 03:42 pm
I see you answered my q.! Thank you.
There are no signs of bullish behavior either, and no signs of bulls really surrendering in size. Fund managers have to give end of 2008 redeemers the remainder of their money back at month-end so they will have to fold their tents by mid March. So on that technical side we really should see a high volume washout first (but anything can happen). Note the gov't lives on tax revenues so they will want to try to engineer a rally by early April to try to avoid a tax revolt. But I think resentment against taxes is a real problem they had better recognize, it will probably keep growing.
Good Info Thx Matt
Posted by lpant on 2nd of Mar 2009 at 03:39 pm
$SPX
Posted by junkmaylbox on 2nd of Mar 2009 at 03:34 pm
Matt, do you reckon a bounce of the trendline (and 700 area) is due? Early tomorrow morning, perhaps?