Tuesday, November 1, 2011

Down To The Median Line

Despite the fact the selloff feels pretty bad over the last two days, all that's happened is the SP500 has returned to the median line of the current rally.  The sharpness of the decline could indicate that more selling is to come, but not necessarily.  After such a huge October advance a sharp pullback would certainly be an expected outcome. As long as the current pullback only results in a retest of today's low, then the rally should remain intact.  On the other hand, failure at the median line would mean trouble.  Note that the 50ma is rising into the pullback.

I was stopped out to two positions today.  I will wait for the dust to settle before looking to replace them.


Anonymous said...

Interesting comments

Dennis the menance said...

A really great blog.

Ender2012 said...

I always look forward to your posts and I can't help but click an ad or two on the way out. I'm looking at a bounce to 1250ish before a larger drop down based on fib and EW and what looks like a perfect place to put a right shoulder.