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Is The Stock Market One Big April Fools Joke?
By Geoff Green | April 2, 2008
Wow, what a move up in the stock market indexes yesterday. I’ve posted several articles on a potential intermediate bottoms and potential trend changes in the stock market recently.
You can view them here Evidence of a Stock Market Bottom, and here, Stock Market Indexes Soar.
So what to expect from here?
The daily chart of the Wilshire 5000 stock market index is already pocking above the resistance line discussed in Mondays post here, Stock Market Bounce.
Even though we will almost certainly see some backfilling and consolidation at this price level, there is the strong possiblity that the short term stock market trend has produced a bounce that will challenge and perhaps break through the highs in the stock market indexes that were set in February of this year.
Take a look at the weekly chart of the Wilshire 5000 stock index below and see how market timing can contribute to profitably investing in this market.
The clearest indicator for the movement of stock prices can be seen by the stochastic and the MACD indicators on this weekly chart.
The stochastic indicator has clearly triggered a buy signal and the MACD histogram is clearly adding to the strength is has been accumulating over the last several weeks.
Although this stock market has not shown the type of trend reversal from an overall bearish to a bullish environment, it is showing that in the short term there appears to be an opportunity to profitably invest in this bullish bounce.
Subscribers can view the recent recommendations including our best stock picks for this environment in the current stock market recommendation area.
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Written by Geoff Green, at http://www.profitable-investing.com Copyright 2008.
Topics: Daily Commentary, MACD, bearish, bullish, stochastics, stock market recommendations, trend analysis |
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