Thursday, March 27, 2008

Equity Market Comment - 3/27/2008

Today gave us some confirmation on the shift of the short term trend from up to down.

The turn down of this model is just one of those confirmations.

The NASDAQ gave a short term sell signal today with the stochastics crossing.

Volume pick up a little as well which also shows some very short term weakness should be ahead of us.

Like the NASDAQ, the S&P 500 also confirmed the short term trend shift to down from up and as you can see on this chart the confirmation came from a multitude of time frames.

On the ultra short term, the action today looks like we may have completed the first leg of this trend shift and from here we might see a little temporary move up and then a final push lower.
As I have stated recently, This potential pullback is going to tell us much about the intermediate term health of this market and what we should be able to expect over the next few weeks.
I continue to support the idea that we have put in a major intermediate term low and upon the completion of this first pullback in prices, I will begin to bump the allocation up to 75% with good quality stocks that look priced to outperform the market over the intermediate term.
I also made the investment into the Chinese ETF's today, so I currently have a 25% stake of the funds segregated for foreign investments in the Chinese Market. I will also be bumping this allocation up also in the very near future.

No comments:

Trend Analysis LLC Headline Animator