If you’ve been following my blog recently you might have noticed my April 28, 2010 “Special Edition: Here comes the red ink, correction begins.”
On April 27th The SPX stood at 1183 and it swung as low as 1065 during the past 7 trading days to ultimately close at 1110.
As I wrote on the 28th
I finally had time to check on the market a big grin came to my face. A lot went on today and news blamed Greece and Portugal downgrades for the sharp drop. Nobody ever talks about the technical analysis because it is beyond the mind of Joe the Plumber.
The first chart was the EUR/USD which broke an ascending triangle on the daily back in December. Below is an animation of Apr 27 and May 7 to show the move. If you have trouble viewing the animated image please leave me a comment because it’s the first time I’m using animated content. (CLICK TO VIEW ANIMATION)
Next we’ll move onto the $TED Spread which jumped nearly 100 percent since the 28th. (Click to View Animation)
Where do I see us heading from here? We still haven’t broken some key supports such as the 1088 trendline and the 1060 250Day moving average. So if we drop another 50 point we will still be good to go for a bounce. If more crazy days are upon us? I will check with BID ( Sotheby’s ) to see if it’s gone below 22 to initiate heavy short positions.
Thats just me and as always these are my opinions and even though they work for me I cant guarantee them working for you.
Have a good weekend and be on the lookout for the latest Current Picks signal changes coming up this weekend.