Home > Market Key Reversal Points To Higher Prices For The S&P 500 Index (FAS, TNA, SH, SDS, TZA, SSO)
Print

Market Key Reversal Points To Higher Prices For The S&P 500 Index (FAS, TNA, SH, SDS, TZA, SSO)

October 4th, 2011

Toby Connor: It appears that the news out of Europe, right before the close, that the EU is looking at further measures to recapitalize the banks, was enough to halt what was likely going to turn into a very nasty drop into the employment report on Friday. Instead what started as potentially very ugly morphed into a key reversal day. Since the market was getting very late in its daily cycle this will likely mark not only a daily cycle low, but a greater degree intermediate cycle low.

I’ve noted in the past that these intermediate degree bottoms are often accompanied by a significant divergence in momentum. You can see on the chart below that this often plays out as a large divergence in the McClellan oscillator.

Have you ever wondered how billionaires continue to get RICHER, while the rest of the world is struggling?


"I study billionaires for a living. To be more specific, I study how these investors generate such huge and consistent profits in the stock markets -- year-in and year-out."

CLICK HERE to get your Free E-Book, “The Little Black Book Of Billionaires Secrets”

The market should now make another attempt at a respectable bear market rally. I would think a very minimum would be a return to the 75 week moving average.

And considering the amount of time the market has been consolidating a move back to the 200 day moving average is not completely out of the question.

I think we probably just saw a major turning point today. One that should mark a bottom for at least a couple of months.

Related ETFs: Direxion Daily Financial Bull 3X Shares (NYSE:FAS), ProShares UltraShort S&P500 ETF (NYSE:SDS), ProShares Ultra S&P500 ETF (NYSE:SSO), ProShares Short S&P500 (NYSE:SH), Direxion Daily Small Cap Bear 3X Shares (NYSE:TZA), Direxion Daily Small Cap Bull 3X Shares (NYSE:TNA).

Written By Toby Connor From Gold Scents

Toby Connor is the author of Gold Scents, a financial blog with a special emphasis on the gold secular bull market. Mr. Connor’s analysis skill of the markets is largely self-taught, though he admits to being an avid reader of Richard Russell and Jim Rogers, among several others.


NYSE:SDS, NYSE:SH, NYSE:SSO, NYSE:TNA, NYSE:TZA


 

Tags: , , , , , , , , , , , , , , ,

Facebook Comments

Comments



  1. CheetaKhan
    October 5th, 2011 at 08:01 | #1

    I hope you’re right.

  1. No trackbacks yet.




Copyright 2009-2014 WBC Media, LLC