May 13, 2013

Short term update

SP500 touched the upper channel and this up leg since 19 April looks like it is close to its end. On the other side there is no signs that this is an intermediate top so after a drop 30-40 points I expect to see another move higher. The German DAX shows similar picture. DJ looks a little bit different - there is still MACD divergence on the daily chart(SP500 erased its divergence) and RSI/Histogram divergence on the weekly chart which means intermediate term correction is around the corner. We will watch this closely
My mistake was focusing too much on analysis and less on trading and signals. Instead wondering if this is a top, what kind of top etc. the approach will be practical - this up leg looks mature and the price is again too far from MA50 on the daily chart. That means we should see a pause or a small pullback to the trend line/MA50 and another up leg should start. Than we will watch how it develops and for potential signs of weakness before calling an intermediate term top.


  1. Great to have you back Krasi! Always enjoy your perspective. Any short signals issued by your system yet? I'm currently scaling into shorts (SPXS). Hoping for a 3-5% correction soon.

    1. Thanks!!
      No, all time frames are still pointing up. On the hourly chart is developing a MACD divergence and pullback is possible. The reactions since November are between 25 and 45 points and I expect something similar.