Sunday, March 24, 2013

Slightly down

SPX closed slightly down this week but the bullish momentum remains unchallenged.

Bears could probably argue that market is making lower highs and lower lows on daily chart and that daily DMI is just a little bit positive but the action remains bullish. Bears pushed market down a few times this week but bulls recovered nicely.

On intermediate time frame SPX remains bullish, the two hour chart shows a bullish EMAs crossing and SPX above rising SMA 120.

Cyprus crisis is not over yet but it doesn't seem to affect the US market too much which is bad news for bears. In general just a rumor of a crisis pushes SPX down, but it doesn't seem to happen this time. SPX remains just slightly bellow all time highs around 1,565.

It is possible that market refuses to correct because the Cyprus crisis may end soon (as soon as Monday). If Cyprus fails to negotiate an agreement with the Euro zone lenders we are probably going to see market moving down but it remains unclear how much the US investors are scared about this. The well anticipated correction may still refuse to occur despite Cyprus.

All the best!


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