Justa's Charts:
I used Zeal's premise this weekend to do some chart work. Here is his point on the SPX regarding the 50 dma trigger:
stockcharts.com[r,a]dhlayiay[d20000115,20030315][pb50!b200!f][vc60][ilb14!la12,26,9!lg!li10,10!lh5,5!lp14,3,3!ll14][J10963081,Y]&pref=G
I applied it to the Dow and the results were less clear cut:
stockcharts.com[r,a]dhlayiay[de][pb50!b200!f][vc60][ilb14!la12,26,9!lg!li10,10!lh5,5!lp14,3,3!ll14][j10955074,y]&listNum=1
But the Wilshire 5000 supported the SPX chart with a channel twist:
stockcharts.com[r,a]dhlayiay[d20000115,20030315][pb50!b200!f][vc60][ilb14!la12,26,9!lg!li10,10!lh5,5!lp14,3,3!ll14][J10970855,Y]&pref=G
The Nasdaq also supports this idea of a 50 dma breach. Trouble is, it has not breached at this juncture. The 50 dma is currently 1343 with a November 2, 2002 50 dma low of 1260.62. This may suggest Nasdaq relative strength going forward. Or it may mean a breach down the road to come. It could mean both. If I get a chance, I will make and post a chart. |
