The 2 hour trends are up but the new R area has held in Asia and the indexes are both below the falling daily trend. This also means that the weekly bars are above the weekly 8 MA and bar number 6 is under construction. Usually four weeks sideways is enough for a change up or down but now we are in the 6 week moving sideways. Very nervous trading in all markets and no clear direction.
The technical picture supports both an upside and a downside move.
The fundamentals are the same and I now suspect that the US president election November 6 could be the first trigger for a bigger trend change. If that should be the case the small movements will continue another 3 weeks. When president Bush won his second election in 2004 a very powerful bull market started. The euro problems will of course hang over the markets these three weeks but so far the European politicians have manged to quickly come up with calming talk to keep the markets steady. The third thing is the company reports but so far more than 60 percent of the SP500 companies has shown better than expected results.
Anyway I will continue to look for weakness day by day in this bull market.
The technical picture supports both an upside and a downside move.
The fundamentals are the same and I now suspect that the US president election November 6 could be the first trigger for a bigger trend change. If that should be the case the small movements will continue another 3 weeks. When president Bush won his second election in 2004 a very powerful bull market started. The euro problems will of course hang over the markets these three weeks but so far the European politicians have manged to quickly come up with calming talk to keep the markets steady. The third thing is the company reports but so far more than 60 percent of the SP500 companies has shown better than expected results.
Anyway I will continue to look for weakness day by day in this bull market.
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