Thursday, May 23, 2013
Bull Market Is Over?
The stock pulled back a little bit today and yesterday after a stream of nice moves in the past 6 weeks. The question is, is this a breakpoint? Although statistics tells us that we should sell in May and run away, we should really look at if the market stays below the recent trendline. It's that simple.
As you can see, today the market broke below the 9-d moving ave and the recent trend line. However, the bulls overturned the bears after the gap down in the morning. This means that there are still people who believe the trend is going to continue. If the market goes back above the trend line, then the recent pullback is all for nothing.
If the market stays below the moving ave, then it might indicates the bull trend is over.