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Registered User
Joined: 8/8/2007
Posts: 42
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I've been watching the 50, 100, 150, and 200 day moving averages on the SP-500, and see all are converging. For the most part, the moving averages are relatively flat going into the new year. I also see a symmetrical triangle forming.
I can't remember where, but I seem to remember that when the moving averages converge on an index like this, a big move is about to occur.
Does anyone else have any thoughts on this? What about the direction of the move?
Mike
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Registered User
Joined: 1/28/2005
Posts: 6,049
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Its just the nature of the markets going nowhere,
its year end and we’re about even.
Imagine a market trading between 400 and 401 for a year,
you can bet that the averages would be about equal.
We had the same thing except 400 point up days canceled out 400 point down days.
Typically increased volatility follows low volatility.
I expect the dramamine (or is it drama-mean) market to continue
ultimately resolving itself to the downside.
(however that wont really change how I trade)
I think we have at least another year that will be within the 2009 lows
and 2007 highs.
Thanks
diceman
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Registered User
Joined: 6/13/2011
Posts: 88
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QUOTE (ponchomike) I've been watching the 50, 100, 150, and 200 day moving averages on the SP-500, and see all are converging. For the most part, the moving averages are relatively flat going into the new year. I also see a symmetrical triangle forming.
I can't remember where, but I seem to remember that when the moving averages converge on an index like this, a big move is about to occur.
Does anyone else have any thoughts on this? What about the direction of the move?
Mike
Well I like to converge with diceman comments, but further deeper you must keep in mind a few things.
First off all the markets on the greater picture are still in a super bear cycle.
A lower low from the highs in 2007.
Europe is in flames without direction.
Middle east is burning
China is slowing down - so will many comodities.
Inflation is seeping like water in the titanic - hell $3.29 for a loaf of bread, and $3.59 for a gallon of gas.
Our house is falling a part (DC).
Where is our housing sector still?
Where are our jobs?
Where are our local and state economies?
Whre is the dollar?
I can keep on going.
so ask yourself - where are the odds of market breakout - up or down?
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Registered User
Joined: 11/25/2006
Posts: 51
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QUOTE (ponchomike) I've been watching the 50, 100, 150, and 200 day moving averages on the SP-500, and see all are converging. For the most part, the moving averages are relatively flat going into the new year. I also see a symmetrical triangle forming.
I can't remember where, but I seem to remember that when the moving averages converge on an index like this, a big move is about to occur.
Does anyone else have any thoughts on this? What about the direction of the move?
Mike
The symmetricsl triangle on the major indexes already broke to the upside the first day of trading this year.
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Registered User
Joined: 6/13/2011
Posts: 88
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QUOTE (PRRWB) QUOTE (ponchomike) I've been watching the 50, 100, 150, and 200 day moving averages on the SP-500, and see all are converging. For the most part, the moving averages are relatively flat going into the new year. I also see a symmetrical triangle forming.
I can't remember where, but I seem to remember that when the moving averages converge on an index like this, a big move is about to occur.
Does anyone else have any thoughts on this? What about the direction of the move?
Mike The symmetricsl triangle on the major indexes already broke to the upside the first day of trading this year.
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Registered User
Joined: 6/13/2011
Posts: 88
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You mean the artificial rally that took place premarket on tuesday?
The market hasn't have a single organic rally all week.
Check on m blog just commented and article about that
http://billbakersblog.blogspot.com/
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