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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 !!!

Tuesday, June 12, 2007

Stock Market -- Technical

Well, the amber caution light is now glowing more
brightly for the market. The SP500 daily now has
its 10 and 25 day moving averages turning down.
This is not yet the case for my NYSE internal
supply / demand model, but the SP500 commands respect.
There is a link to the chart just below. Note also
the negative head of steam for the MACD. Daily chart.

The weekly SP500 chart is on a link below. Here we see
that both the weekly stochastic and the MACD are closing
in on breakdowns. Weekly chart.

Both charts are signaling that the market is getting close
to turning down. They are not sell signals, but warning signs.
As such, one should pay heed, while recognizing that the
market can dish out surprises. I am edgy about this situation
because the Treasury Bond -- a driver of this spate of stocks profit
taking -- is getting quite oversold short term.

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