Kamis, 22 September 2011

09-23 buy the dip or not?

We always have to answer this question don't we?  Longer term I am fairly negative, but we are looking for a swing trade - not a long term relationship.  So I look at the cycles (and other TA indicators) for answers.

So I looked:

1) the 11.2TD cycle which appears to be dominant should bottom by mid day tomorrow (buy the cycle bottom).
2) the CCI has now moved below -100 (usually a place to buy).
3) The lower envelope line crossed (a buy signal).

The weight of the TA says tomorrow (Friday) may be the time to buy.  Here is the SPX  showing the points mentioned above:

GL traders.  If you have indicators that agree or disagree please share.

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