xjo new years party zoomba lounge, page-35

Monthly S&P500. 2nd inside month. Still holding up vis a vis 2000/2001 and 2007/2008 with the 10 month sma heading South, but not at the same accelerating manner as in the prior 2 bear markets. The December close was highest since July. The October outside up month provided the anticipate support through November / December. The bow there might be getting a bit stretched imho.



The MACD cross on the monthly is something I've been keeping a very close eye on and this past month the rate of descent and distance between it and the signal line have both decreased. Certainly a different situation to 2007/2008. I had suggested this was evidence of Central Bank intervention. There is a link below to an article about that. How long can they stem the tide? Mid January has a low for a number of reason and I noticed that Laundry too has a low mid January. He expects a sharp drop into that low. Downgrades from S&P for Eurozone sovereigns and banks should be the catalyst.



http://www.safehaven.com/article/23793/central-bankers-vs-natural-market-cycles-in-2012