Thursday, October 11, 2007

Trendlines still intact

Today seemed like a very bad day didn't it? Many of the bears are again calling for the end of the world. The truth is however that no trendlines were broken today. That's not to say they won't be broken tomorrow or the next day but as of today nothing serious has happened. Also take a look at the summation index. Notice how almost all declines are preceded by a divergence in the index. At the moment there is no divergence as a matter of fact the SI was up today. We may get a little short term weakness, but as of today it hardly looks like we saw the beginings of a bear market yet.