Tuesday, May 15, 2012

Even lower

Market gets lower every day.  The majority of the support levels were overcame. SPX went slightly bellow the October-April rally support line around 1,335. 

The major uptrend line is around 1,250, still way bellow the current level so the long term uptrend is still bullish but is getting weaker by day. The weekly DMI, a pretty good intermediate-long term indicator is only slightly positive.  a few more days like today and yesterday and we'll see this indicator turning bearish.

As long as bad news are coming out of Europe I don't see bulls doing too much damage to the current downtrend. Maybe a relief rally here and there but nothing serious. Greece is going to have new elections but they are not sure when (sometime in May-June). It is possible that the extreme left party is going to win the elections and Greece is going to get out of the European Community.  If this happens market will plunge way bellow 1,300. 

Gold, silver and oil continue to go down but natural gas is moving up lately.


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