LunaticTrader

Investing with the Moon

Waiting for a breakout

Posted by Danny on December 7, 2015

A few weeks ago I called for the S&P 500 to go sideways in the 2000-2100 range for several weeks. That’s what we are getting, but how much longer can it continue? Not very long I think. Let’s have a look at the chart (click image to enlarge it):

S&P 500

The S&P is back within a narrow range, just like it did in the first half of the year. The Earl (blue line) and MoM indicators are close to neutral and pointing down. The slower Earl2 (orange) keeps coming down from the major high it reached in early November and is now close to neutral as well. It is possible that the market is turning up already, but one or two more weeks of correction would make for a more attractive setup. So, I would still wait until the Earl2 drops below zero and forms a bottom. We stay in a lunar green period, which tends to favor a rising market, but the technical outlook still points the other way. So more sideways action remains my base scenario.

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 )

Twitter picture

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

Facebook photo

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

Google+ photo

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

Connecting to %s

 
%d bloggers like this: