Wednesday, November 18, 2009

200 Day Moving Average Crossroads

What Direction Will the Market Take - That is the Daily Question!
2 Year, Weekly - Nov. 17 - Start with the longer term chart. Price action is bumping its head on the 200 Day Moving Average. This is considered a beachmark for a Bull Market vs. a Bear Market. Does the market break through and remain above the 200 Day MA or Retreat?
3 Month, Daily - Nov. 17 - Note the Rolling Waves in the 3 Month chart. Price Action is at the top of the channel and begs to fulfill a pattern by turning downward.
20 Day, 2 Hour - Nov. 17 - Bullish Channel dominates the Trend in the 20 Day chart. Price action is above the 200 Day MA.
2 Day, 10 min. - Nov. 17 - All politics is local and all market action is daily. Trade decisions are made by observing the longer and intermediate trends (bullish), AD lines (bullish), UVol (bullish), Double Bottoms (reversals), RSI & CCI snap back ups (reversals), and MACD (confirmations). Above action was a slow grind up. Reversals are highlighted with Rectangles.

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