LunaticTrader

Investing with the Moon

Outlook August 9

Posted by Danny on August 9, 2010

Markets advanced last week, but the move seems to be staling around 2300 on the Nasdaq, 1130 on the S&P500.

With a few Green Period days left this week we could try the upside again. But I would use any up day to take profits on long positions and get ready for the next Red Period.

The current chart suggests that the next Red period could produce a sizable move down.

As you can see, the S&P 500  is barely holding above the up trend line that started in early July. With the next Red Period looming we could easily break down, which would probably see us to 1060-1080 pretty quickly.

Be very careful this week.

Danny

Post a comment (disagreement also welcome):

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

 
%d bloggers like this: