Many times in hindsight things are quite obvious. As one observes the S&P 500, since the huge jump Sept 1, 2010 on "ok" Chinese PMI / U.S. ISM data the S&P 500 has not fallen below the 13 day moving average. The only two minor retracements were to this level, which resulted in a bounce. While seemingly reverse engineering a theory, the 13 day MA is actually one used by quite a few technicians.
As one needs to think more and more like a quant, one would assume without a combination of a meaningful dollar rally AND a close below the 13 day moving average on the S&P 500 - the market remains in uptrend. I say that even as many leaders (especially of the cloud kind) are weakening, and speculative juices are on overdrive with yesterday's explosion of multiple small cap "nonsense" Chinese stocks.
Tuesday, October 12, 2010
K.I.S.S. - Coasting Along the 13 Day Moving Average
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Mark
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9:46 AM
K.I.S.S. - Coasting Along the 13 Day Moving Average
2010-10-12T09:46:00-04:00
Mark
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K.I.S.S. - Coasting Along the 13 Day Moving Average
2010-10-12T09:46:00-04:00
Mark
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