Sunday, January 17, 2016

SPX: Death cross imminent and current EW count

A well known and widely followed trend following strategy  is the MA crossover(Moving Averages: Strategies).You can clearly see in the next chart that we are very close to a cross of EMA(21) below EMA(55) a.k.a death cross.

But wait a sec...Mr Market is a bit kinky and likes surprising us.We believe (based on our current count on SPX) that soon we will see a bounce towards around 2040