Thursday, April 02, 2009 12:06:53 AM
Food for Thought
I agree that this wave could be over but I hesitate to say that it's definitely over. I actually think that the technical picture is fairly ambiguous right now. While some oscillators are bearish other technical signals are bullish. The strongest bull case is the stubborn support of the 50DMA. The last few days are the first instance in a year that the 50 day has held multiple and consecutive tests on the daily chart. There's also a catalyst for a bull move in FASB announcement on mark-to-market accounting rules tomorrow. It's dicey to take on a whole lot of weight on the bearish side until 780 is breeched. SPX can hit 870 from here pretty easily.
I agree that this wave could be over but I hesitate to say that it's definitely over. I actually think that the technical picture is fairly ambiguous right now. While some oscillators are bearish other technical signals are bullish. The strongest bull case is the stubborn support of the 50DMA. The last few days are the first instance in a year that the 50 day has held multiple and consecutive tests on the daily chart. There's also a catalyst for a bull move in FASB announcement on mark-to-market accounting rules tomorrow. It's dicey to take on a whole lot of weight on the bearish side until 780 is breeched. SPX can hit 870 from here pretty easily.
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