Wednesday, May 6, 2009

SPX Cycles

After todays close, the percentage of stocks above their 50 and 200 day moving averages is in thin air and suggesting to me a correction is very likely. Previously the weakness in the Percent of Stoocks Above the 200 Day Average left room for the shorter measure to remain overbought. At this point I think this is no longer the case and a 2-5 day correction is very likely

Percent of Stocks above their 50 and 200 Day Averages
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Mid day chart: SP500 Daily with cycles bars
Looks to go higher over the intermediate term.
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