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Thursday, 03/19/2009 9:35:25 PM

Thursday, March 19, 2009 9:35:25 PM

Post# of 541
Stockcharts.com doesn't have linear regression, but if you look at it, the DOW, SPX, and BRCM are all reversing right at the upper line of the max 100% regression level. That tells you it's 1 full standard deviation above it's 'mean' price level. I'm using the 3 month daily chart.

It's a pretty good revesal indicator on both the lows and highs. It's rare you get prices in anything at those levels. The lower level reversed the SPX and DOW twice last fall. Both major 20% rallies were bounced off those levels. So, it's time to short BRCM and the SPX.


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