I analyze macroeconomic issues from a fundamental perspective, and I analyze market behavior from a technical perspective. Original macroeconomic analysis can be found here and both macro analysis and commentary can be found on my Caps blog. If you like or appreciate my analysis, please add yourself to my Following List

Friday, October 2, 2009

EOD Count Oct 2

Looking at the Daily Chart first, here were some observations from yesterday morning's post: Morning Update - Oct 1. Start of a Brand New Quarter:

The daily chart is showing weakness. I made these observations yesterday, but the large MACD support line is breaking down. The RSI is flirting with 50 again and the lower support channel it has enjoyed all through the P2 rally. And it is flirting with the lower side of the EMA 20. Money Flow is uninspiring and trending weakly.

The is nothing that screams "trend change" yet, but there is a lot of bearish portents. And when some of the bullish counts are negated, one must seriously consider the bearish picture. I am not giving advice and every trader manages risk and timing in their own way. However I am highly short right now and very comfortable with my decision.

Well, I am still comfortable with my short positions and the chart is more-and-more saying "trend change"

Price action so far is channeling very nicely down. If my count is correct, Monday should be a very nice down day as well to finish out Minuette 3.

blog comments powered by Disqus