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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 !!!

Thursday, October 01, 2009

Stock Market -- Technical

As discussed back on 9/20, this large advance was in need of a
vacation or correction after such a powerful run. Today's sharp
decline fractured the uptrend leg running from early July.
Moreover, further weakness would fracture the uptrend line
running from early Mar. At today's close of 1030, the SP500 is but
10 points above the longer running trend line and a break there
would be a bit more serious. the market is slightly oversold now
and is not yet in a confirmed shorter term downtrend. Now since
July, the boyz have been quick to go long on the little dips, so the
next trading day or so will be interesting. A more respectable
oversold would come at around SP 500 990.

A look at the chart linked in below shows that SP 500 is in a
pivotal area. Chart.

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