tag:blogger.com,1999:blog-7296410208500992185.post7373792144427977661..comments2023-10-30T05:03:34.290-04:00Comments on Vinny Catalano: Technical Thursdays: Is This How Bear Markets Are Supposed To Start?Vinny Catalano, CFAhttp://www.blogger.com/profile/13958861468295795061noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-7296410208500992185.post-37999463735439016312008-02-09T16:03:00.000-05:002008-02-09T16:03:00.000-05:00Hi. I enjoy reading your blog very much and I woul...Hi. I enjoy reading your blog very much and I would like your opinion on something.<BR/><BR/>I'm looking at a daily line chart of the S&P 500 using a 5,3,3, slow stochastic with simple moving average method. <BR/><BR/>The stoch indicated an oversold condition on Jan 22 and is now indicating an oversold condition as of Friday's close, which is at a higher price.<BR/><BR/>In my experience, when the stoch indicates an oversold price that is higher then where price was previously, that is supportive for an uptrend in price.<BR/><BR/>Of course, the market is volatile now and is very vulnerable to a new shock, but absent a new set of negative circumstances, it does look like the potential for a rising S&P 500 is there.<BR/><BR/>Morgan Stanley: "As the stimulus from the tax cuts and massive Fed easing filters through, the US economy should get a lift in the summer, and our US economics team is forecasting a healthy 4.5% annualized growth rate in the Jul-Sep quarter. That would make for a mild and short-lived recession in the US."<BR/><BR/>Your opinion would be greatly appreciated. Thanks in advance.NewstraderFXhttps://www.blogger.com/profile/12624104275480994208noreply@blogger.com