Sunday, April 20, 2008
RedDirts Weekly Update
I'll start out this week with a look at the SP500 Daily Chart. You'll notice the rally off the JAN and MAR lows have come on decreased volume. Very similar to the bottoming action of the 2002-2003 bear market end. The market closed above both the 29 day trading band and the 65 day trading band. Resistance as I see it would be the center line of the 360 degree trading channel and the upper band on the Weekly Chart. That would mean I'm expecting strong resistance in the 1416-1426 area. Of course the FEB 1st high of 1396 would need to get taken out first. Another bright spot on both the $SPX and $NDX is that I see crossover buys for the PPO on both weekly charts.As for the BricTrade. The $HKO is still in a uptrend after breaking out from the bullish divergence formation. This Article explains all 3 classes of divergences and is a must read! I prefer to use the RSI and StochRSI for oscillators when detecting divergence. That explains the overlay of the 2 indicators on most of my charts. Brazil has shown the most strength of the four individual Bric country ETF's and EEB is the leader on the BricETF Perfchart. Brazil and Russia are in mark-up phases on their charts. While India and China are in accumulation phases. The phases and chart formations are explained in this article buy Chuck Dukas. $RSX(Russia) warrants special attention at this time due to the fact it is in the Gap Area left from the start of it's downtrend. More on trading gaps at a later time.
Now for the Moosecall. Still no update at the time of this post. But, when we do get a switch it appears it will be to ILF. Click the Moosecall link later today and hit refresh on your browser to catch the latest from William Dirlam.
I can't leave you without a little something to study. So, along with the article about the 3 classes of divergence, here are a few articles of interest on a particular trend indicator. Article #1 , Article #2 & related terms , Article #3.
Labels: BRIC ETF's, decisionmoose, RedDirts BRIC Trade, sp500, technical analysis, weekly update
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