Monday, October 20, 2014

Does Bull still have a pulse?

My trusted indicator from an index point signal has gathered itself and is above the Bear line. This is a SLOW moving indicator , and as monthly chart needs time to settle itself.
With the recent rally, the initial RED signal with a breach of 90.00 was reversed. I do still believe we are in the latter phases of building THE TOP, if new highs occur, I do not expect them to greatly exceed what is in place now.

A big miss from IBM today didn't paint a great picture for corporate spending, IBM is a better economic indicator than Aaple. IPAD sales are disappointing , but iPhone sales were OFF THE HOOK!
Consumer spending is 70% of the US economy, with wages stagnant that also does not bode well for the economy.
Interest rates are still being held at 0% by the Federal Reserve, even after 5 years of recovery they cannot even say when they will begin to rise.

Is this recent uptick in volatility just a short term phenom? Did we get enough correction to resume bull march upward to infinity?

We are quickly correcting oversold condition, and approaching the 200 day moving average. Let's see if it continues business as usual and what me worry.

D

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