DOW weekly chart warns what's ahead. http://stockmarket618.files.wordpress.com/2011/12/2011-12-10_dow_wk1.png Adverse market conditions continue to frustrate and bewilder trolls who require a scapegoat to externalise their anger. This will get worse as the long term bear market develops.
Classic momentum analysis is pointing in the opposite direction, as is the broken trendline and dow theory. Who to trust?
Trust NO ONE including me. You must always evaluate for yourself. Everyon ehas something to teach you about trading,...sometime it is what to do and other times it is what NOT to do. But you have to figure that out for yourself. As for the "classic momentum analysis" I agree that yesterday's price action was not bullish but hardly a death blow. We did briefly trade below 1231.47 which was my cut off but we failed to close below it. Currently I see the markets in an indecisive trading/consolidation range and expect a breakout one way or the other soon. Yesterday made me more neutral about the nearterm than I was but definitiely not yet bearish again. Current market charts: 1) Weekly = consolidating with BULLISH bias 2) Daily = consolidating with Neutral bias 3) 60 min = consolidating with BEARISH bias I tend to follow longer time frames for my direction and shorter for timing of entry and exits. So for now I am still long but less long than a few days ago.
More useless tripe from GrandTricycle on ET this afternoon and SP500 crash imminent as the government decided not to regulate rampant web pollution by the tricycle menace.
Market weakness.... A close here below 1231.47 (we are curently at 1229.91) would turn the daily chart bearish as well. Suggesting further downside. Just my 0.02