As the above chart shows, the Qs have two lines of strong support - one is the parallel trend channel from the March low, and the other is the January and February highs. These levels should not be breached on a closing basis or the rally is over. I continue to suspect that the 50dema in blue will provide primary support and the these lower levels may not be reached.The 5 period RSI for the Qs is near 0, and the McClellan Oscillator is approaching -200. Both of these indicators show a deepenening short term oversold condition. It may take the rest of May to retake the highs, but this correction should be nearing its conclusion.
2 comments:
"The likely period for a completion of a longer correction is between 5/15 & 5/22."
Craig, what was your choice of those dates based upon, please ?
Regards,
dave
Yea though I walk through the Valley of the Shadow of Debt
I shall fear no default rates; for thou art with me
Thy printing presses and thy stress tests comfort me
Thou preparest a bull market for me in the presence of Roubini, Taleb, and Grant
Thou anointest my portfolio with liquidity; my wallet runneth over
Surely bonuses and bailouts shall follow me all the days of my life
And I will dwell in the house in Greenwich forever.
A-Ben
Author, author: Colin Negrych
http://www.newyorker.com/online/blogs/newsdesk/2009/05/nick-paumgarten-the-valley-of-the-shadow-of-debt.html
Is the Valley of the Shadow of Debt west of the Hudson ? http://voxtango.com/bmind/plate1.jpg
Regards,
dave
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