Thursday, May 21, 2009
The 20 is broken
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The chart above is the broad market index, the SPY, daily.
As you may notice, the center line of my Bollinger Band, the 20 day Moving Average, has been breached. In fact, we closed below it. This powerful signal indicates the beginning of a pullback.
There is a lot of support below (see this video) so no one has a clue how deep the pull-back will be, but I'm hoping that it will be significant. The market needs a higher low to draw in basketfulls of sidelined money.
Oops... dinner is ready... gotta go!
Posted by congamike at 5:26 PM