by Carl Swenlin
April 24, 2009
Last week I wrote: I am expecting some kind of correction,possibly a short consolidation -- a week or so -- or a quick, scarycouple of down days. So far we have had a little of both. Mondaythe S&P 500 had a scary -4.3% down day, and the rest of the weekprices moved more of less sideways, recovering all of Monday's lossesby mid-day Friday. For the week the market had virtually no change. Theprice action helped to relieve the short-term overbought condition, andbroke down a small ascending wedge that had been forming over the lastfew weeks (not drawn on chart). The break down was technicallyexpected, but, being a short-term formation, not much downside followthrough was expected either.
Note that the support of the declining tops line, recentlypenetrated to the upside, is continuing to hold.
2008 TIMERDIGEST RANKINGS FOR DECISION POINT #17 Intermediate-Term Stocks (52-Weeks) (TD Index 111.9 Vs.SPX 61.51) #4 Bond Timer (*TD Index: 112.32 Vs. Bonds 118.26) #5 Gold Timer (TD Index: 126.33 Vs. Gold 104.61) #9 Long-Term Timer (2 Years) Stocks (TD Index: 132.35 Vs. SPX 63.69) #2 Long-Term Timer (3 Years) Stocks (TD Index: 150.38 Vs. SPX 72.36) #2 Long-Term Timer (5 Years) Stocks (TD Index: 168.82 Vs. SPX 81.23) #3 Long-Term Timer (10 Years) Stocks (TD Index: 159.36 Vs. SPX 73.48) 2007 TIMERDIGEST RANKINGS FOR DECISION POINT #40 Intermediate-Term Stocks (52-Weeks) (TD Index 91.9 Vs. SPX103.28) #5 Bond Timer (TD Index: 105.85 Bonds 104.39) #2 (Tied) Long-Term Timer (2 Years) Stocks (TD Index: 117.63 Vs. SPX117.63) 2006 TIMERDIGEST RANKINGS FOR DECISION POINT #11 Intermediate-Term Stocks (52-Weeks) (TD Index 111.3 Vs.SPX 113.6) #3 Bond Timer (TD Index: 112.32 Vs. Bonds 97.46) 2000 TIMERDIGEST GOLD TIMER of the YEAR *All timers are assigned an Index of 100 at the beginning of the year.The amount above or below the starting index indicates the percentagegain or loss for the year. Beginning in 2006 we began using mechanical models -- theTrend Model for Bonds, Gold, and Long-Term Stocks, and the Thrust/TrendModel for Intermediate-Term Stocks. Prior to 2006 we used discretionarysignals. |
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BIO: Carl Swenlin is a self-taught technical analyst, who hasbeen involved in market analysis since 1981. A pioneer in the creationof online technical resources, he is president and founder of DecisionPoint.com, a premier technicalanalysis website specializing in stock market indicators, charting, andfocused research reports. Mr. Swenlin is a Member of the MarketTechnicians Association.
