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Thursday, May 21, 2009

Market Thought... pivotal

A lot of pundit indecision's in the financial news today. I mean two days ago Cramer was saying buy buy buy, and today its 'we may go lower'.

Here is the source of the indecision...

To the right of the red vertical line is the 'rallying' market dynamic. Notice how little buying interest there was except when the market was on the 20SMA. That is bad news. The only support is, imo, a weak one just below today's close. We breach it the market is basically fucked. We can either create a new support level or hit the 62SMA (which is a typical support SMA).
I think we see the 830s. I do not think we break 700 level due to stability in the financial markets, unless credit decides to crunch again... but I doubt that.

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