Thursday, June 17, 2010
Market outlook 17/06/2010
It has been very volatile since my last post and s&p is back above 1100, trading around 1117 at the moment. As you can see from the daily chart, 20 day MA crossed 200day MA to the downside for the first time since June 2009(when it crossed 200dayMA to the upside), and is the first serious sign of a possible reversal in the mid term bull market.I will try shorting the market around 1140-1150 where 50day MA sits(1141 at the moment)together with the broken trend line. But till something significant appears on the weekly chart(ie.20 week MA crossing 50week MA to the downside),it is too risky to sit short if the market continues to move higher above 1150.