Friday, November 16, 2012

Another week on the downside

SPX moved up a little bit today but ended up in red for the week, losing about 20 points overall. Market remains bearish on intermediate time frame but notice that today was a reversal day after touching a new low. Sometimes this is an indication that market wants to change direction. I am not going to cover my shorts yet but I keep this in mind and going to act in case EMAs give a bullish crossing.



SPX is no less than 60 points bellow declining SMA 120 on two hours chart. This is quite a lot and I expect the difference to get smaller next week, meaning that I expect a flat week or slightly on the upside.


Weekly chart shows that SPX managed to stay above the 4 years uptrend line that resides around 1,320. Weekly DMI remains negative meaning that long term remains bullish but seriously challenged at this point. For the long term get negative I expect an obvious move bellow the bull market uptrend line and also to see EMA 25 crossing EMA 50 on the downside on weekly chart for all major indexes.



However, Dow is slightly bellow the bull market uptrend line (12,600).


AAPL continued it's fall this week, but got support around previous low, 530. Its major support is around 460, the 4 years uptrend line.



UNG, an ETF I keep showing on this blog, it's behaving as I predicted. It did move up before touching the lower edge of the trading range. This is bullish and is going to be even more bullish if UNG is going to push above the upper edge of the trading channel that is now around 25.5


All the best!

babaro

P.S. Come back on Sunday or early next week for an interesting study about 2x and 3x ETFs

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