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SPX turning down

Interesting market these days. I couldn’t believe what I saw. Using common sense everybody could see that this rally is not sustainable, yet the market was rallying. Maybe it is due to a fact, that vast majority of mutual fund managers are under-invested, they missed this rally and they are terribly under-performing. Scared they may lose their job. So they were piling on on every news from Europe. Well as some columnist mentioned they were piling on European rumors rather then news, because the news are terrible.

The premarket data showed nice gains this morning, but soon after opening the market lost all gains based on the ECB chief Mario Draghi speech. Maybe this is the catalyst to more downturn trend.

The market was in overbought territory and due for rebound. I do not say, we will go dramatically down here. All I see is that we most likely pull back to 50 day SMA and that is most likely happening.

Although this market is bearish from longer term perspective, it still is probably bottoming and starting a new bullish trend.

Happy Trading!

2 responses to “SPX turning down”

  1. Ron says:

    I like Your Article about SPX and your analysis. Thanks!

  2. Gary says:

    Choppy market! Do you think today upward move is just a part of the overall drop? How low can we go?

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