Wednesday, December 15, 2010

The Imminent Collapse Of The DJIA & S&P500

The Imminent Collapse Of The Dow Jones Industrial Average and S&P500

The above chart was created by using a method called renko which looks at
price data over time and displays it in a compacted manner, very easy to read
and taken action on regards trading whether you are a retail investor, bank,
mutual fund or hedge fund. Notice the MACD setting underneath the chart.
Because the charting method compacts the data, its now possible to set the MACD
to a much smaller setting such as 5,9,12. The MACD reveals a positive divergence at
the March/2009 bottom and most interesting is the fact it now shows a negative
divergence indicating we have not much to go in price or time on the S&P or DJIA.
Next Blog will have a look at the 10yr Treasury Bond which has generated much
excitement because just a perusal of the double bottom alone is enough to convince
me of the trend change.

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