Replies to post #40670 on Short Term Trading Member Forum

[andiron]

not to quibble, but prices will face higher SMA on the way up..50,100,200,300,400 and so on..So this can be done ad infinitum to justify bear position and a losing one..i have a short position from 950 SPX tho

[watcherandsee]

I like the charts not for what they suggest but because it is a clear charts for a long period which could be handy in these uncertain economic times

thx for sharing

[PriceTeam]

320-day ma. If the market busts above it tomorrow/Monday, the short covering alone could drive us to SPX 1050. In that case, the 10-week low may stay above SPX 1000, and that prospect alone will ensure MASSIVE short covering.

The last time the market challenged and successfully crossed above the 320-day moving average was in 2003 (there's that analogy again). See first chart below.

In the second chart (current market), notice the similarity of the market action around the 20-day moving average and the 320-day. Interesting. Clearly we are at a crucial moment in market history.

Thanks Trend1!



(charts courtesy of stockcharts.com)