Thursday, June 7, 2012

Buy signal but reversal day

EMAs did give a bullish signal today confirmed also by SMA 120 on hourly chart. However, we had a reversal day, rally in the morning just to see all the gains gone by the end of the day. Dow was the only index that managed to preserve a little bit of its gains.

Daily and weekly DMI remain negative so one should be very carefully if he or she wants to get long here.

In order to get bullish we need to see at least daily DMI turning positive and a pattern of higher highs and higher lows. So far we have exactly the opposite, lower lows and lower highs both on daily and weekly charts. The good news is that SPX managed to climb above SMA 200 but is still bellow a declining SMA 50.

Gold was hammered again confirming the downtrend started a few months ago. 


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