In the chart right above(daily s&p) you can see that the trend line i drew a while ago is broken.200 day moving average seems to hold s&p around 1102...20 day moving average crossed 50 and approaching 80 day moving average, but still not near to 200 day Ma. The real down trend begins when the 50 day crosses 200 to the downside, but when 20 day crosses 200 , one can still use a rebound to sell because it is a strong sign!
The second chart in the middle ,you can see the weekly graph, and the market rebounded from 50 week MA during the flash crash!Here the picture is also still bullish, first 20 week has to cross 50 week , and the real down trend starts after 50 week crosses 80 week to the downside.
Overall, for the long term , I am still bearish and with the new sovereign debt issues, I am more bearish than ever.But for the medium term, the bulls still have the advantage of the trend, although one should never forget that anything can happen with this much nervousness in the market.
next day edit: On the top you can see the 10 year monthly graph after yesterday's close.Well you can see 50 month MA marked the resistance and actually one can see 20 month MA crossing 200 month MA to the downside which shows a bearish sign for the longer term.This is a significant sign to support my long term bearish idea
If you are really bearish, buy some more CAC JUN 1600 puts @ 2.00. Your size mate!
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