Thursday, December 18, 2008

Money flow up sharply as S&P holds 50-day MA

A new 6-month reaction high in the Chaikin Money Flow indicator suggests bullish momentum holds sway as the S&P works on holding its break of the 50-day MA. Stochastics aren't overbought so there is room to the upside.

The potential pitfall is the rising wedge pattern for December, but even if this breaks I doubt it will make it all the way back to its start at the November low. Potential for a bear trap.

Dr. Declan Fallon, Senior Market Technician, the free stock alerts, market alerts and stock charts website