Equity Markets: Technical Update (11-10-08)
Monday, November 10, 2008 at 11:31 pm
Interesting day where I didn’t think we would be fading the gap as far as we did. Regardless, we re-entered the consolidation range not giving a care about China’s stimulus package. On a longer short-term view, we are forming a bearish flag after having failed the 20-day MA 3x. At this point, we are more likely to test the October lows than to breakout to the upside. This can obviously change as each new day gives better guidance. The NASDAQ formed a ’stick sandwich’ and you can also see that the Russell 2000 formed a same pattern, both of which exhibit highly reliable reversal patterns.
SPX 1-day
SPX 10-day
SPX 6-month
NASDAQ 1-day
NASDAQ 10-day
NASDAQ 6-month
Very good call on the market today! Let see how the shorts do tomorrow morning
…. .both of which exhibit highly reliable reversal patterns…. Reversal for market to go up or down?
down. These are bearish stick sandwiches