I'm not a huge advocate of chart reading, but it seems the 1400 on the S&P 500 has developed special significance over the past 9 months. From August of last year to early January of '08, 1400ish was an area of support. However, since late January, 1400 has been unbreached. This is nothing more than a curiosity for me - I don't make timing decisions based on "support" or "resistance", but I do find stuff like this interesting.The more important timing considerations are; how quickly will the excessive sentiment we saw in early March burn off? AND how quickly will the short term uptrend in the major indexes reverse?
I'm a follower, not a prognosticator. All I can do is follow the yin yang of my sentiment and trend tools.
4 comments:
Thanks Tom for visiting today. Just in case you do not get a chance to catch my reply. I am using Google Spreadsheets in conjunction with Google Finance to automatically keep track of the portfolio. I do not need to do any updates except when there is a new transaction. And even then, it only takes a minute.
cheers,
Tom,
I usaully follow simple TA (updtrend, downtrend, reversal, congestion, supports , & moving averages).
One indicator that is very close to the S&P 500 at 1400 is the 20 month MA @ 1425.
Going back to 1980, this indicator seems to be a good proxy for reversals in trend.
Next trend seems to be either congestion (like 1994) or uptrend (like 1991).
Finally, thanks for your blog.
CA
tom,in case you missed it, I posted pring's indicators a couple of posts back
jasper
yeah, I saw that. Thanks Jasper!
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