View RSS Feed

JTH

Double Bottom Breakdown

Rate this Entry

Today the major indexes sold off in unison, it could have been worse, this was only the S&P 500's 5th worst decline this year. Will the selling pressure continue? The system I previously mentioned, has generated 3 buy signals in the past 4 days, this is an unusual occurrence and normally only happens during bear market conditions. By my definition, we are not yet down-slide embedded, (meaning there's still room to the downside) and we aren't locked in.

From the August bottom to the most recent 52-week highs, both the S&P 500 and Transports are sitting just above a 50% retracement. This is the place I call our proverbial line in the sand and with the small caps already tagging a double bottom, this is a good place to rest.


mlk_man's account talk-untitled-png

__________

Looking at a 1-year chart of the S&P 500 verses the Wilshire 4500, we can see there is an unusual 6.71% performance gap (meaning the large caps are outperforming small caps by a wide margin). At some point in time I may transfer risk from the S-Fund to the C-Fund, that decision will be dependent on their performances during the next upwave.

mlk_man's account talk-2-png

Best of trades...Jason

Submit "Double Bottom Breakdown" to Digg Submit "Double Bottom Breakdown" to del.icio.us Submit "Double Bottom Breakdown" to StumbleUpon Submit "Double Bottom Breakdown" to Google

Comments


SPY (C Fund) (delayed)

(Stockcharts.com Real-time)
DWCPF (S Fund) (delayed)

(Stockcharts.com Real-time)
EFA (I Fund) (delayed)

(Stockcharts.com Real-time)
BND (F Fund) (delayed)

(Stockcharts.com Real-time)

Yahoo Finance Realtime TSP Fund Tracking Index Quotes