SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: J.T. who started this subject8/10/2000 9:31:01 AM
From: macavity  Read Replies (2) of 19219
 
Moving Average Madness

In the NDX all the moving averages have been converging. If you look at a graph all the EMAs from 5 days to 126 days are all within an approximate 50 - 75 pt range - ~3680 to ~3740, less than 1 days trading range. Interesting? Most of these EMAs are exceptionally flat. Curiouser and curiouser? The 200 Day EMA lies at c. 3540

stockcharts.com[W,A]DACLYYMY[PC10!C21!C63!C126!C200][VC60][IUE63,200,21]

A moving average represents some sort of consensus view of price for that particular time horizon, with its slope giving a consensus view of the direction of the trend. In other words there is a current consensus between short-term traders (intra-daytraders excluded) and people with longer-term horizons. This convergence of so many moving averages is an exceptionally rare event, especially when they are all so flat.
This to me looks like a massive point of inflexion in the market. Knife-edged stability. Markets are not systems of equilibrium and order so this has to be seen as the exceptional event that it is. In other words we are going to move and move big from here. The last time there was a situation like this was Jan98 and Oct98 both of which resulted in massive upside moves.

Bull or Bear - it is not decided who has won but expect a big move.

- macavity
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News