Earlier today I noted that prices had moved below 120 which is a technically important level. Prices increased from below the 120 level to above the 120 at the close. They did this on incredibly high volume, which is technically a good sign. However, note the following:
-- Prices are below all the SMAs
-- All the SMAs are headed lower
-- Shorter SMAs are below longer SMAs
-- Prices are below the 200 day SMA
Bottom line, this is still a pretty ugly chart.
The main issue gong forward is AIG. While there have been plenty of rumors, nothing firm has emerged. When that is solved, I would expect a relief rally.
I'm on Linked In and Twitter (@captivelawyer). Silver Oz's Linked In name is @silver_oz. NDD is a fossil and may be reached by etching a picture in stone on the wall of a cave.
The Bonddad Economic History Project
At the beginning of 2012, I decided to start looking at the actual, statistical history of the US economy starting in 1950. The reason is simple: to find out what really happened. So, when you see title of a post that begins with a year such as 1957, followed by "employment" or "Fed policy: you know what it's for. You can also access the information by typing in BE for Bonddad econ and a year to find information on a particular year.
Here is a link to pages that contain links to all the posts on the years listed.