S&P 500 - June 12, 2011

In two previous posts, I highlighted structural weakness of S&P 500

http://markettime.blogspot.com/2011/06/s-500-june-4-2011.html


http://markettime.blogspot.com/2011/05/s-500-may-20-2011.html


That weakness led to a breakdown in shorter term technicals and some intense selling

I used two proprietary Market Time Premium indicators, Market Alignment Index (MAI) and Objective Elliot Wave indicator (OEW) assess the structural weakness of the market.

This is how these indicators look now






Dropping and getting oversold.

They measure aggregate trend and alignment of the index.

I also pointed out the fact that the March price low was not associated with a weekly momentum cycle low. This is how the weekly momentum cycle looks now







Still dropping

One thing I like about TA is that it, at its purest, deals with fact and has nothing to do with opinions and biases.

It allows one to assess the situation. Knowing of structural weakness well before break down in price allowed me to take risk mitigating measures and be largely protected from the recent market turmoil

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