About Me

Retired chief investment officer and former NYSE firm partner with 50 plus years experience in field as analyst / economist, portfolio manager / trader, and CIO who has superb track record with multi $billion equities and fixed income portfolios. Advanced degrees, CFA. Having done much professional writing as a young guy, I now have a cryptic style. 40 years down on and around The Street confirms: CAVEAT EMPTOR IN SPADES !!!

Wednesday, December 17, 2008

Stock Market -- Short Term Technical

The short term uptrend is gaining firmer footing now as the
25 day m/a is set to join a rising 10 day m/a. However, the
SP 500 is strongly overbought in the very short run following
yesterday's ZIRP rally, courtesy of the Fed. Note also on the
chart link below that the "500" has not taken out two previous
interim peaks of recent weeks at 910-911, indicating resistance
and hesitancy. It is tempting to say that a healthier rally would
have easily blown through that level, but first we need to
see how well the market handles the short run overbought.

The ADX indicator is set to turn positive (+D1 to go through -D1),
but note the weakening momentum line in black. That is not a
confidence builder either. Chart.

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