Friday, November 30, 2012

Change of trend

The intermediate time frame has turned bullish yesterday after going above SMA 120 (1,408). EMAs did cross a few days before and I was waiting for confirmation from SMA 120. 



Daily chart looks pretty bullish, we have now one higher low and two higher highs on this time frame. What I am a little bit concerned is daily DMI that refused to get bullish despite a pretty impressive rally from 1,348. This is a non-price indicator that evaluates the momentum. 



Weekly chart doesn't look as bullish as the daily one, there is no obvious higher high, SPX closed pretty much at a previous high seen a few weeks ago on the plunge. Weekly DMI remains negative but as I mentioned many times this is not a timing indicator for the intermediate time frame. By the time DMI turns bullish half of the rally is done. 




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