Stock Market Viewpoint

Stock Market Viewpoint
Reading the Tea Leaves...

Thursday, September 19, 2013

Midmorning Update: Bernanke's Bombshell - Buy or Sell?

Stock Market Technical Analysis Blog

click on image to enlarge

There is confusion in the market this morning after Ben shocked the market yesterday by trading long term stability for short term euphoria.  Some people think it its time to mortgage the house and buy in big, others are saying sell everything and run for the hills.  

I thought a couple of index charts might help in making this crucial decision.  The top two charts are the mid term channels of the S&P and Nasdaq.  The two lower charts have the 100 day EMA line applied.  When a market is overextended, it can be measured by how far it is currently above its 100 day EMA line.  

Trade well my friends


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