Tuesday, July 06, 2010

DOW and S&P500 Charts

Ominous market signs are appearing as the 50 day moving averages (blue lines) slice through the 200 day moving averages (red lines) - both circled in red. This is an important long-term trading signal for institutional traders. When the 50 day MA crosses below the 200 day MA, it is called a "death cross."

Though the Full Stochastic Oscillator (Full STO) currently illustrates severely oversold conditions (making a short-term bounce quite likely) the long term trend has been set by the 50/200 death cross and markets will most certainly trend lower in the coming weeks / months!

DOW - Click image to enlarge

S&P 500 - Click image to enlarge

Note: A market warning was provided over a month ago: DOW implosion imminent


1 comment:

Jb said...

Thanks Randy. After reading the articles on your website (and many others)I ramped up my efforts to protect my 'wealth' (or 'differed consumption' if you prefer). The ups and downs in the markets are no longer nauseating for me. I'm sure my wife thinks I'm absolutely crazy; time will tell. Good luck to everyone.