I wanna show you how the S&P500 is doing right now, because a major turn may be hitting us again...this time maybe on the upside! Who knows me knows that when I see the long term S&P500 chart, I see it in a bullish mode, in spite of being more bearish fundamentally (things aren't so good...the recovery of the real economy is being very hard, bla bla bla).
Now let me show you the reason of tonight's post:
As far as today's close, I'm getting a new weekly buy signal from my trend follower. This is the second one since the famous March/09 bottom and I see it as a very reliable one, if it lasts until friday's close. This is because the algorithm calculates the weekly value of the follower each day of that week, but the corresponding signal will only be valid in the last day of the week. So, we need to see a nice breakthrough this week in the S&P in order for the resume of the bullish trend. And that will only be allowed by the daily chart!
In a daily view we have this picture:
My trend follower is in buy mode since the 16th Feb close and, although another resistance has been surpassed today, some indicators are showing a small weakness. I see the RSI and the MACD with a small negative divergence and the volume looking very bad....reaaaally bad! The doji candle of today doesn't appear very well in the picture as well...I would say that (at least) a small corrective move will be done from here and the weekly trend follower won't change at the end of this week...
Trade safely,
JAPO
No comments:
Post a Comment