The Bernanke speech lifted the U.S. indexes on upside to close the week just below the 21 day MA:s.
Dow and SP500 now seems to load for the long awaited correction rally which might start this week. On Tuesday the 8 day MA will finely turn on upside giving a clear signal to cross the 21 MA.
The European markets seems less agressive but use to follow the American indexes in situations like the current.
I must admit that the last two weeks have been very difficult to predict the short term trend because the markets has been so volatile and changed the hourly trend very often. My job is to write about the long term trends and they are still very much in place but I know that many want me to tell my view of the short time picture which is not my speciality and I am doing my best.
The so called robot trading get bigger ad bigger and the computers which trade on all markets get smarter and smarter. I have seen the start of it and got used to it in the currency markets during the 1990:s. The result of this computer trading which only works on the short trends sometimes makes it impossible to tell what will happen the next few days. So when I talk about the short term trend it often get changed by a sudden intervention of computer trading that sudenly pushes the market very high and then turn around to send the trading to a new bottom. Day traders usually know this fact and many loses money so often that they stop trading. In the currency markets it is said that only 5 percent win.
Dow and SP500 now seems to load for the long awaited correction rally which might start this week. On Tuesday the 8 day MA will finely turn on upside giving a clear signal to cross the 21 MA.
The European markets seems less agressive but use to follow the American indexes in situations like the current.
I must admit that the last two weeks have been very difficult to predict the short term trend because the markets has been so volatile and changed the hourly trend very often. My job is to write about the long term trends and they are still very much in place but I know that many want me to tell my view of the short time picture which is not my speciality and I am doing my best.
The so called robot trading get bigger ad bigger and the computers which trade on all markets get smarter and smarter. I have seen the start of it and got used to it in the currency markets during the 1990:s. The result of this computer trading which only works on the short trends sometimes makes it impossible to tell what will happen the next few days. So when I talk about the short term trend it often get changed by a sudden intervention of computer trading that sudenly pushes the market very high and then turn around to send the trading to a new bottom. Day traders usually know this fact and many loses money so often that they stop trading. In the currency markets it is said that only 5 percent win.
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