Friday, January 25, 2013

The 'Apple' has fallen; how about the 'Tree'?

S&P500: Daily @ Close 01/24/2013
Busy but important chart: note the previous occasions when the DMI/ADX (Trending Indicator) has witnessed the ADX @ a '25' reading & rising (in either trending direction)? The most recent 2x's have marked a High in mid- Sept. 2012 heralding a near 9% correction over the next 2 months.
That Correction/ Decline was 'arrested' when the ADX again pierced the 25 level (this time the 'Trend' was Down), and THAT marked the mid- Nov. Low @ 1343; initiating this Rally of some 10%...back above the Sept. 2012 High.
Caveat Emptor; no?
Thursday's  Large Range Indecisive Day providing the near perfect 'back- drop' against which to tactically position oneself.