24/04/2012

DOW, SP500 and FTSE are holding above critical support points while DAX, SWED and IBEX are taking new lows.

All daily trends are down but the weekly and monthly trends are either up or sideways for all indexes but IBEX which gets closer to the last support points from 2009 day by day.

The weekly trends 8 MA's are mostly down but the 21 MA's are up. To get a steep fall the 8 MA must cross the 21 MA which also must turn down. This will take several weeks in some cases. The monthly trends are all up and it is seldom an index can penetrate and get below a rising monthly 8 or 21 MA.

These technical facts makes a falling daily trend less dangerous and we have seen during the last few weeks how the daily movements suddenly can turn both up and down without warning. It is most often the weekly and monthly trend lines that causes this.

Because of this some indexes are difficult to predict at present but that will change with time and as soon as the road is open for up or downside you will read it in the blog. It is difficult to explain and understand but I will try to show how it works with pictures in the blogs the weeks ahead.




No comments:

Post a Comment