Thursday, February 25, 2010

SHOULD THE BEARS BE CONCERNED?

3 comments:

  1. Nope! The difference are these two EMA Trend Lines (EMA21 and EMA34). They are "negative" signifying a "mid to long term" trend has started. The last two crossovers beginning at 1440 lasted 204/208 Trading Days ea... www.spwavetrade.blogspot.com

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  2. Yes, it's very concerning. This is a very critical juncture. The market is still at around the levels of December 2009 sideways & great downtrendline resistance.

    Arguments for the bullish side is that there is wave 2 is unusually long in duration & at some points, it's sharper than wave 1. Furthermore, 1150 to 1044 can be counted as a ZZ as well.

    The bearish arguments include that the present circle is way larger than previous ones. In the previous one, when it's at the yellow arrow juncture, the market is already at or near its old highs whereas now it's only about 1/2 way. Furthermore, it more and more looks like the market needs extra thin volumes to have a rally. It has been the trend since MArch 2009, but it gets more pronounces as of late. The last week had diminishing volumes but the market is struggling to rally. If volume is large, it almost always resolves to the downside. Could it be that the market can't sustain any further rallies despite the diminishing volumes?

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  3. thanks for visiting and the comments gentlemen. i agree with all your points.

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