Here's a graphic look at conditions isolating the trend ... more or less supporting the case bottom is in. This is not to suggest the market cannot drift lower over the next several days. Rather, it largely intends to point out RSI and MACD similarities to the mid-January through late-March '08 period.
Unfortunately, there's no timing an explosion above index 50-day moving averages. It could be this week. We're about to learn the degree to which Goldman Sachs and Morgan Stanley profited from the collapse of commodities and equities markets.
Relatively speaking large-caps are leading, and that's a positive when you're assuming a solid bottom is in. Yet the broad market is by no means badly lagging. Everything is looking up.
Lots of room to run before the brick wall at NASDAQ 1900...
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© The Risk Averse Alert — Advocating a patient, disciplined approach to stock market investing. Overriding objective is limiting financial risk. Minimizing investment capital loss is a priority.
Analysis centers on the stock market's path of least resistance. Long-term, this drives a simple strategy for safely investing a 401(k) for maximum profit. Intermediate-term, investing with stock index tracking-ETFs (both their long and short varieties) is advanced. Short-term, stock index options occasionally offer extraordinary profit opportunities when the stock market is moving along its projected path.
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