A Look at the Bigger Picture
It is an important point in time to put the larger technical picture in perspective and examine the contextual backdrop of our daily trading. The strong correlations in our market continue, but now they are extended to the foreign indices.
The S&P 500 index is testing its 200-day moving average, the previous October high and a 38% retracement of its 2011 low and 2012 high. Momentum and trend indicators are tracking lower, and Chaikin money flow has dropped below its 21-period average. The Volatility Index, at the top of the chart, has been holding above the 22 level for three weeks. In August last year, an extended move above this level caused a severe drop in the equity index....200 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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