Nov 28, 2012

Are We In A Dead Cat Rally?

Based on the "Most investors sell at the bottom" chart here is upgraded analysis. There is something in common for the market corrections within the last two years. Repeating pattern shows that after initial sell-off there is a relief rally. This so called "Dead cat" rally usually touches the strong resistance of 50 day MA followed by another drop. Current pattern obviously suggests we are in rally mode, however there is high probability for further drop if 50 MA appears to be the turning corner again. 

Dow Jones Corrections
Dow Jones Corrections
More on Indices
Create your own chars with Charting tool

No comments:

Post a Comment

Leave your comment

Creative Commons License
This work with autor is licensed under Creative Commons 3.0.