Stock Market Technical Analysis
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Over the past several years, every time the S&P has reached maximum extension from its 324 EMA line there has been a 75 to 200 point pull back happen within 4 to 8 weeks of reaching the maximum extension. During that 4 to 8 weeks of propping the market at the maximum extension level bonds always make a nice run and the S&P scratches out only a few more points. This has happened over and over. All an investor has to do is to sell out of stocks when the S&P first reaches the maximum extension level, switch over to bonds and make money on bonds during this propping period and then the fall. Once the market gets oversold and a decent signal sets up, switch back over to stocks for the ride back up to maximum over extension.
How many investors do it? Maybe one out of a thousand switch from stocks to bonds at the arrival of S&P maxiumum extension.
Trade well my friends
Alan
