Could October Fest Bring A 200-Day Test? ~ The Risk Averse Alert

Tuesday, September 29, 2009

Could October Fest Bring A 200-Day Test?

There sure is good reason still to fear more selling yet to come. In fact, October might turn interesting. And you can't throw out the possibility 200-day moving averages could be challenged.


Supporting probability more selling looms are both NYSE and NASDAQ McClellan Oscillators ... each positioned on the sell-side of their respective balances ... this, following an extended period weakening — diverging from indexes in their persistent climb higher off March bottom.

The CBOE Put/Call Ratio also appears positioned in a potentially foreboding way...


The ratio's present position relative to its 200-day moving average has a couple noteworthy precedents this year. So, the message is beware.

Regarding five waves down as shown on the above S&P 500 chart ... this would be just grand from an Elliott Wave perspective ... because the mystery in what subsequently could lie ahead, surely, would only thicken ... and isn't that rather both typical and fitting.

Fast Money
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