The Stock Market Week - 11/14/2008 | ||
| All the major US indices were negative. For the week the Dow Jones Industrial Average dropped 446.50 points, or 4.99%. The Standard & Poor's 500 Index dropped 57.70 points, or 6.20%, while the Nasdaq Composite dropped 130.55 points, or 7.92%. Industrial Goods and Technology are the most oversold sectors, while Utilities and Healthcare are the most overvalued sectors. | ||
| Standard & Poor's 500 Index Trend Analysis Standard & Poor's 500 Index is in a long-term down trend that started on 10/11/2007 at 1576.09. The third (III) wave down has started on 5/19/2008 at 1440.24 and lost almost 43.3% reaching 816.69 level on 10/14/2008. The sub wave 5 down of the long-term down wave three (III) is in progress. Elliot Wave principle considers wave five as the last sub wave in impulse wave structure. The fifth wave is usually less powerful than the third wave; it shows slower speed of price change and presents bullish divergence between price and technical indicators. Daily and weekly technical indicators have bullish divergence. Bullish divergence is usually considered as an indicator that bears are losing power, and that bulls are ready to control the market again. Often bullish divergence marks the end of a downtrend, but it may mark the consolidation period before the next down move as well. | ||
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| Presented by www.thegreedytrader.com Research Group. | ||
Sunday, November 16, 2008
S&P 500 technical indicators have bullish divergence
