Trend Shift for Stock Indices
This last candle on the 4-hour chart gave us an intermediate-term trend shift for the S&P 500 stock index. The S&P 500 as many of you know is an excellent proxy for the global business cycle, making a trend shift in this market significant.
Given this market has retraced approximately 40% of the 2007-2009 sell off, it is not unreasonable to consider the possibility that the previous 6-month up-move was a bear market rally prior to a resumption of the 2-year bear market. How it behaves at the 1000.00 level will be worth watching.
Jay Norris
www.trading-u.com
jnorris@brewerinvestmentgroup.com
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well said but looking at the correlation between the dollar and the S&P index, it seems that a bearish sentiment has now returned to the markets.
Thanks Mannix, I agree. Looking at the correlation between stock indiciesand the yen pairs it looks like the yen pairs are leading
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