Tuesday, August 30, 2011

Conflicting trends

Intermediate time frame has turned slightly bullish. I have now the confirmation from the two hour chart, EMAs crossing but still bellow SMA 120. Even better the daily DMI is close to neutral.

However, the long term is still slightly bearish, with SPX unable to climb above SMA 75 on weekly chart.

So, on one hand a new rally is just starting (intermediate time frame) on the other hand the relief rally is over (long time frame) and the market is supposed to go down from here. I would go with the bearish scenario but I may be biased here

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