Wow you are a regular Hairy Potter aren't you. I wish I could claim the market will not go any lower and the proceed to pick price targets well below the current prices.
I think there will be a lot more collapses, however, the chart is still fairly strong. If we are at the bottom, then the bottom is now.
Good observation in your chart. A sharp rejection of the lows (as happened yesterday) is often the start of a new rally.
mike is correct, the fear levels seem to be dissipating. Use measures of volatility to guage fear. And equities have a tendency to be illusory as long as new debacles don't exceed in proportions of the previous debacle. premiums will be built back in, news has a time-value, and eventually desensitization occurs. Wallstreet hooligans will bid it back up. Its not like May 2006 when War footage filled the screens. And notice what happened when the war footage decreased, and Israeli bombardment diminished. Learn from the past. 1642 target.. before the next big doozy.
Yes, and the vix and the vbi curvature finishing higher on a day the market was positive is a sure confirmation of that. Do you know the definition of "dissipate"?
I noticed something on the chart. Before the February swoon, price tested the 50 day moving average and then about 2 months later there was the plunge. Then we had the typical double bottom. Now here we are, price had tested the 50 day moving average 2 or 3 times this time around about 60 days before the plunge. In this uptrend, when price starts to test the 50 day then its almost like an early warning sign. Just a side thought, the huge 7 year cup of the $SPX is mainly psychological. Since 2000, many of the growthy equities like Broadvision were kicked to the curb. If you adjusted the $SPX for inflation and currency, then the chart would also look much different. Therefore, the right peak at 1550 is nothing more then a psychological trader's trick. They can go over it if they were so inclined.
blah blah blah Michael. You keep trying to predict the future. Are you trying to impress us ? B/c we're not impressed. You change your predictions after every day. First you say go long, then go short, then oh wait long after 1550, then oh wait, long after 1475. Enough is enough. You're chart reading might be impressive to the average joe, but to me its just useless. Have you actually made money from your chart reading skills ? B/c each time you give a tip based on TA, it seems like the stock does teh exact opposite or just trades sideways.