The market was kept in check by political uncertainty last week, but it looks like we will get some kind of relief rally today.
The lunar Green Period is about to end, so the rally could be rather short lived: day(s) rather than weeks.
Here is the updated chart for the S&P 500 Index (click for larger image):
The S&P seems to be in a sideways triangle pattern that could go on for another month or so. But the market will have to chose a direction sooner or later. We are only just above the long term support trendline, so we have to be careful in the upcoming lunar Red Period. If we drop back below 1285 in the coming weeks, then a downward acceleration becomes likely.
Don’t be too happy about the (probable) raising of the debt ceiling. Getting deeper in debt can offer some brief relief, but ultimately it is never good news in the longer run.
Be well, Danny
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This entry was posted on August 1, 2011 at 12:49 pm and is filed under Market Commentary.
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LunaticTrader
Outlook 1 August
Posted by Danny on August 1, 2011
The market was kept in check by political uncertainty last week, but it looks like we will get some kind of relief rally today.
The lunar Green Period is about to end, so the rally could be rather short lived: day(s) rather than weeks.
Here is the updated chart for the S&P 500 Index (click for larger image):
The S&P seems to be in a sideways triangle pattern that could go on for another month or so. But the market will have to chose a direction sooner or later. We are only just above the long term support trendline, so we have to be careful in the upcoming lunar Red Period. If we drop back below 1285 in the coming weeks, then a downward acceleration becomes likely.
Don’t be too happy about the (probable) raising of the debt ceiling. Getting deeper in debt can offer some brief relief, but ultimately it is never good news in the longer run.
Be well, Danny
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This entry was posted on August 1, 2011 at 12:49 pm and is filed under Market Commentary. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.