There were tonnes of "Hoo Haa" from CNBC and etc when SPX, DJIA, DJTA, COMPQ and even RUT break out and make all time highs (ATH). I guess the "dump money" are pretty cruel to leave this broad base market index aside just because it has not break out and make new high!!!
There you are, why is it lagging when the counterparts are in cloud 9?
1st warning. Price got rejected by 2009 uptrendline and closed as monthly high spin wave DOJI below it. 2nd sell signal would be triggered if price move down further below 8 months ema. 3rd and most important support level (previously a resistance) is ~10773. Breaking down this would be massive sell signal as it confirms that the break out of this resistance is a fake out.
The fact that the index got push once below this support in Oct is already some warning.
There is a monthly gap above 8348 which i reckon will be filled if the above 3 mentioned condition are fulfilled and we have a decent correction.
P.S. However bearish i am about the market now, i have to leave 1% allowance for that extra push on the upside.
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jangseohee
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jangseohee
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jangseohee
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Justiceisfalse
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Definitely worth keeping an eye on.
jangseohee
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Hi Justiceisfalse,
when a major index breaks Monthly uptrend line, it tend to cling on the undercut and kiss it to make a head and once get rejected, complete SHS will be formed.
This is only my hypothesis, but exact duration remains unknown
Justiceisfalse
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I agree with the kiss. I usually look for a new high on lower momentum and then get short in to the next selloff.