Tuesday, 2 October 2012

Daily Index Cycle update

A bit of a mixed day, the opening gains levelled out by midday, and then it was merely a case of seeing what the bulls could cling on to. There are now clear bear flags on most of the daily index charts, and they are suggestive of a move to around 1420/00 in the coming 3-5 trading days.






A day when both sides could claim some sort of a minor victory. The bulls clawed a little higher (well, aside from the tech sector), but the bears certainly took over in the late afternoon.

The underlying MACD (blue bar histogram) cycle is very low, so its going to remain very difficult for the bears to see any decent one day falls.

What is most apparent, we do have some interesting bear flags. If we can break back under sp'1440, then the door opens up to a multi-day move to either 1420 or 1400. All things considered, a break under the important recent low of 1397 still seems very unlikely.

A little more later.