Investing with the Moon

One way street

Posted by Danny on March 26, 2012

The markets remain in a one way street and continue to display strength.
Our lunar Green Period will be ending today, so I am looking for market weakness in the next couple of weeks.

Let’s have a look at the current S&P 500 chart (click for larger image):

S&P 500

The market is testing the upper boundary of its long term rising trend channel. Meanwhile my Earl momentum indicator shows a very large bearish divergence and has just turned down. Some kind of correction is probably imminent.
I would look for a drop towards 1350, then probably a rebound and possible double top in April.

Stay tuned, Danny

Post a comment (disagreement also welcome):

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

You are commenting using your 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: