Thursday, December 10, 2009

S&P Review

For those who haven't bookmarked my other blog at Zignals:

It has been a few months my last review of the market - so what is the state of play? In September I summarized:

"Given the S&P's sharp move off of lows it would appear momentum is set to continue in favour of bulls as sideline money steps in on weakness. But look for this rate of ascent to slow as markets work off overbought conditions and MAs 'catch up' with the index.

The 50-day and 200-day MAs should provide support and buying opportunities for new long positions. Stops can be placed on a decisive break (>1%) of the 200-day MA, protecting against any 1987 like outcome. But even here, the losses of 1987 did little to erase the bulk of the gains the S&P had chalked up earlier during the decade.

Although pre-1950 was excluded from the dataset it would appear unlikely a major downleg will follow."

You will get the rest of the article here.

Dr. Declan Fallon, Senior Market Technician, November 2009 has seen a significant upgrade and is on course to becoming the eBay of finance with our new Beta MarketPlace and a new rich internet application for finance, the Zignals Dashboard. Zignals now has new fundamental stock alerts, stock charts for Indian, Australian, Frankfurt and soon Canadian stocks, tabbed stock list watchlists, multi-currency portfolio manager, active fundamental system stock screener and trading system builder. New Forex and Index data.