Markets trading at LT/IT supports in ST triangles

SPX trading near at LT support TL and 50 monthly ma as it was during 1987 and 1990. As noted before, the % correction is a fractal of 1998.

Weekly price actions are also trading near at IT supports as shown on the weekly chart on the link.



Markets are trading above weekly moving average 200 supports even though markets traded below IT trend supports. Markets are oversold in intermediate term.

The recent correction is not a surprise, as noted going into the recent correction, even though the correction period was short and similar as a bull market correction. Having said that, the market sentiment is pessimistic with commodity price hype, especially during the last week. Instead of being bearish on commodities after the recent bubble, we have a new wave of bullish comments during the last week. The additional mania on commodity does not bode well for markets. Nevertheless, the speculation is based on the global demand, international companies will do well.

Bernanke and the Gov is faced with the art of managing skill to direction the current economy. I think that they will do fairly well even though they are faced with massive pessimists.


IT trendlines shown on the weekly charts on link.
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