No News is No News
For everyone who is anxiously awaiting a new “buy” signal for the stock market, I still have no news. Things, believe it or not, are about the same as my last post about market timing. For the more technically-oriented investors… or those that feel like they need a little more detail about the “whys” of what’s happening at the moment, here is the complete description of exactly where we are.
Click to enlarge
The situation at present is that we have broken a minor, valid downtrend line (yellow downtrend line) and then gone on to form a couple of minor, higher lows (green up arrows). Recently, we’ve hit our heads on the 10 week moving average (blue line). The last time that this happened, it spelled trouble for the markets (yellow down arrows).
Today’s million dollar question is how this will resolve. Are we setting up for another leg down or will we hold the line and ultimately move higher? As it is right now, I can say that we are firmly on the fence.
Also, don’t forget that I’m talking about a short to intermediate term possible turnaround here. Everything needs to be considered in the context of an overall bear market as I have been discussing.
I’ll let you know when that changes.
