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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (47301)	12/12/2011 12:38:29 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 67759

SP500 back to testing the 1250 break out level. From a technical point of view the SP500 has set a series of lower lows and that is not a good sign as it means bullish traders are starting to lose conviction. A little more bullish on the DOW, but it needs to break the 12,500 level soon or traders will just let the index find it own direction with will typically be down. DOW trading activity being confirmed on the transports. Same situation of lower lows on the COMPQ. It needs to break the high of August soon to keep bullish trader engaged. Long term down trend still intact of financials. Stay away. Gold bouncing off the long term up trend line, but in the short term it has formed a symmetric triangle. That means traders are undecided what direction gold will trade in. As a result the trading range is narrowing significantly. The next break could potentially be a big more taking it to the highs of September and it may even clear it or trigger a significant sell off that would break the long term up trend line and causing a significant and sustained sell off. Gold has been a safe haven, but a resolution of the current national debt crisis in Europe might trigger a sell off or China's economy falling into a slow down might trigger a buying spree. I don't follow gold closely enough to tell which direction is more probably. If the trading range stays very confided for an extended period of time the symmetric triangle pattern will be negated and gold could potential just move sideways till a new trend emerges.