Posts Tagged ‘MACD’
SPX-Heads or Tails
February 26, 2010
2 comments
What a DAY!
What Do I see:
- Bullish if price goes over 1120.
- Bearish if goes below 1050.
- Likely support at 950-960 (If I have to guess exact number, it would be 958).
- Green lines are my Chart art (projections). Technical Analysis is an ART!
- ADX black line indicates trend strength but not the direction. When price was going down (from 1150 to 1050) DI- was greater than DI+ indicating the downtrend and ADX started to rise => trend was strengthening. Then ADX line reversed from about 35. While price started to rise, for a short time DI+ became greater than DI- but ADX value kept on falling suggesting that lack of uptrend strength. Now DI- is back being greater than DI+. Now if the ADX starts to rise (as shown in the image) this would make for a bearish case.
- MACD under zero, hence crossover suggest [up]correction. It has a slight hint of topping out.
- Interesting observation: Line at 1044 acted as resistance on Oct 2008 and support on 05Feb 2010. Any relation between these times or just coincidence??
What a day today!!! Every time you get excited, market makes you humble!! In the morning Bull were jumping off the window and later in the day it was bears turn.
I do have a bearish bias, but being bull is no fun either!
Cheers!