Downside pressure in the market has continued, but we remain well above the recent lows.
As long as we hold above the August lows things look OK and a good base is being built from which a next advance could start.
Here is the updated chart for the S&P 500 (click for larger image):
Lunar Red Period will end later this week, so we can start looking for a possible bottom. Important support levels remain near 1100 and then 1040.
My EARL momentum indicator is not in bottom territory yet, but could get there by next week.
So, get ready, but don’t hurry. For longer term buying I prefer to wait until we see strength in a lunar Red Period, and we are not there yet.
It would be a first positive indication if the S&P stays above the August lows, because then we can start a new pattern of higher highs and higher lows.
Stay tuned, Danny
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This entry was posted on September 12, 2011 at 2:36 pm and is filed under Market Commentary.
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LunaticTrader
Outlook 12 September
Posted by Danny on September 12, 2011
Downside pressure in the market has continued, but we remain well above the recent lows.
As long as we hold above the August lows things look OK and a good base is being built from which a next advance could start.
Here is the updated chart for the S&P 500 (click for larger image):
Lunar Red Period will end later this week, so we can start looking for a possible bottom. Important support levels remain near 1100 and then 1040.
My EARL momentum indicator is not in bottom territory yet, but could get there by next week.
So, get ready, but don’t hurry. For longer term buying I prefer to wait until we see strength in a lunar Red Period, and we are not there yet.
It would be a first positive indication if the S&P stays above the August lows, because then we can start a new pattern of higher highs and higher lows.
Stay tuned, Danny
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This entry was posted on September 12, 2011 at 2:36 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.