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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: nextrade! who wrote (218038)9/4/2009 8:58:09 PM
From: nextrade! of 306849
 
Chart Spotlite Looking Back
by Carl Swenlin
September 4, 2009

decisionpoint.com

I continue to get mail from people who question how it is possible to be bullish in the face of the worst fundamentals since the Great Depression, so I thought it would be useful to look at a chart of the 1929 Crash and the decade that followed it.

Bottom Line: Medium-term indicators are still quite overbought, and a correction would be the best way to clear this condition. Is entirely possible that we have seen the top of the rally/bull market, but medium- and long-term signals are positive, so I think the worst case we should expect for now is a correction. Our medium-term timing model will switch to neutral from buy if the S&P 500 daily 20-EMA crosses down through the 50-EMA.

decisionpoint.com
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