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Post by TradingForGod on Sept 28, 2004 22:10:15 GMT -5
From last time: “…The S&P could fall back to 1100ish and the Nasdaq to 1840-1825. But I think that should stop the decline. If it doesn’t, something more bearish is going on here…If you were smart enough to follow my advice (just kidding, I am not THAT conceited) and liquidated length into trendline resistance a couple of weeks ago, the area listed above should be good support to try and buy back in…”
The S&P 500 fell to 1101 today, right at the lower BB and the 40-day MA (green and blue lines respectively), and then turned and bounced back to close at 1110, up 6.5 points. The Nasdaq didn’t quite fall to the target range, making a low at 1852 today, but it too reversed hard off the 40-day MA. Was this the end of the correction? It’s too early to tell just yet, but I can say that so far the market has stopped where it needs to. A rally up past the 20-day MA at 1117 is positive and a close above the last swing high at 1131 is VERY bullish for a return to the highs from earlier this year. A close below 1100 now is not necessarily bearish, but it’s CERTAINLY not bullish. I suggest you reset length covered into major resistance now looking for a retest of the downtrend line. A close below 1100 is the stop on this new length, and should be sufficient to scale back core positions even more. God bless, TFG
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Post by grambo on Sept 29, 2004 9:09:52 GMT -5
To TFG:
Another great article.
Do you think the S&P 500 would make a good swing trade vehicle?
Thanks for sharing. grambo
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Post by TradingForGod on Sept 29, 2004 10:06:39 GMT -5
absolutely...the short term movements in the indices provide the most efficient way to "trade", as opposed to invest, in the stock market.
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Post by MinaMultiplier on Sept 29, 2004 13:44:00 GMT -5
Thanks TFG! Your insight is appreciated.
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