28/10/2011

IMPORTANT MESSAGE


The rally that started October 4 has not changed any index status of bear market. Three indexes have a chance to do that if they get a monthly close next Monday above certain numbers AND DO NOT CLOSE BELOW THOSE POINTS LATER ON A MONTHLY BASIS UNTIL SPRING NEXT YEAR. Here are the indexes and what they must close above Monday.
DOW        12.322.5
SP500        1.325.35
FTSE          5.924.2
All other indexes will still be in a bear market because they cannot get out of that status. If DOW, SP500 and FTSE do not close above these numbers OR CANNOT GET A MONTHLY CLOSE ABOVE THEM IN NOVEMBER the likelihood is that the trend will  turn around and test October 4 low again.

It is all about the 8 months moving average. If this average will continue to point down the bear market is in place and any attempt to get above it is only temporary. If the indexes can close over the numbers the moving average will rise at least for the moment.

There is currently only one market that is in a very strong bull market and that is Gold.

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