Best Financial Markets Analysis Article Today we saw a Hindenburg Omen in quite a while. I must apologize if this has been going on last week, since I missed it. The significance is that when more than one Omen occurs within a limited period, the probability of a crash increases significantly. Regardless of the status of the Hindenburg Omens,we should be on full alert for a crash.

The SPX declined below intermediate-term trend support at 1238.15t, but did not break through the hourly mid-cycle support at 1224.54 or the 50-day moving average at 1220.88. Thus, we may need another down day just to break through all of the supports. In addition, we should not be seeing retracements above 50%. In fact, today’s 32.4% retracement may be all we see in this decline.

In summary, SPX is breaking through its “congestion zone” and may soon be in free-fall below 1220.88. If SPX declines below 1158.67 in the next day or two, there will be no options expiration bounce.

NDX is now below all supports except the weakest, its hourly mid-cycle support at 2270.58. Its retracement may also be complete. A gap down below 2270 may be all the NDX needs toaccelerate down into the end of the year. A back-test of the 50-day moving average at 2296.11 (and failure) is also known as the “kiss of death” by traders.

Today’s failure at the massive Head & Shoulders neckline in the Euro should indicate that all equities are at risk.

Good luck and good trading!

Tony

Our Investment Advisor Registration is on the Web

We are in the process of updating our website at www.thepracticalinvestor.com to have more information on our services. Log on and click on Advisor Registration to get more details.

If you are a client or wish to become one, please make an appointment to discuss our investment strategies by calling Connie or Tony at (517) 699-1554, ext 10 or 11. Or e-mail us at tpi@thepracticalinvestor.com .

Anthony M. Cherniawski, President and CIO http://www.thepracticalinvestor.com

As a State Registered Investment Advisor, The Practical Investor (TPI) manages private client investment portfolios using a proprietary investment strategy created by Chief Investment Officer Tony Cherniawski. Throughout 2000-01, when many investors felt the pain of double digit market losses, TPI successfully navigated the choppy investment waters, creating a profit for our private investment clients. With a focus on preserving assets and capitalizing on opportunities, TPI clients benefited greatly from the TPI strategies, allowing them to stay on track with their life goals

Disclaimer: The content in this article is written for educational and informational purposes only. There is no offer or recommendation to buy or sell any security and no information contained here should be interpreted or construed as investment advice. Do you own due diligence as the information in this article is the opinion of Anthony M. Cherniawski and subject to change without notice.

Anthony M. Cherniawski Archive

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.