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Be Careful About Buying These Dips!

  • Written by Syndicated Publisher No Comments Comments
    October 27, 2012

    Since mid-September the price of oil has plunged $14 a barrel or 14%. The S&P 500 has declined 4.1%, and the Nasdaq 6.3%. Just over the last two weeks gold has plunged $93 an ounce, or 5.2%.

    The has created short-term oversold conditions that look tempting, and rally attempts are likely.

    But the charts are saying be careful. The previous support at 50-day moving averages has been broken, and may now be overhead resistance.

    In fact in some cases, like oil and the Nasdaq, the 50-day m.a. has already been tested by at least one rally attempt and held, indicating it it is now potentially overhead resistance, and rally attempts might be better handled by selling into them if they approach the m.a.

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    To read my weekend newspaper column click hereGold Has Lost Its Glitter Again!

    Subscribers to Street Smart Report: There is a hotline from last night and an in-depth U.S. Markets update from yesterday afternoon in your secure area of the Street Smart Report website. There will be an in-depth ‘Gold, Bonds, Dollar, Commodities’ update for you there later today.

    Images: Flickr (licence attribution)

    About The Author

    Sy Harding publishes the financial website www.StreetSmartReport.com and a free daily Internet blog at www.SyHardingblog.com. In 1999 he authored Riding The Bear – How To Prosper In the Coming Bear Market. His latest book is Beat the Market the Easy Way! – Proven Seasonal Strategies Double Market’s Performance!
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