Posted by Danny on June 25, 2012
Markets did climb last week, before stumbling pretty badly on Thursday, but still ending the lunar Green Period with a decent gain.
The steep drop on Thursday makes for an ugly picture in the charts of a lot of stocks and indices, and could foreshadow more weakness to come.
Let’s have a look at the S&P 500 chart (click for larger image):
A new lunar Red Period is getting under way. Meanwhile, my Earl momentum indicator is also signalling a top.
In the next couple of weeks I would look for a drop to 1300, and possibly a retest of the recent low around 1275.
That would set up an attractive buy entry point.