Monday, February 1, 2010

Market Analysis for 01/02/2010

The first day of February. Seasonally, February is one of the most bearish months off the year, the other being September. With the chart setup pattern, I believe this month will be the same.

All three indexes are in a confirmed downtrend since 2 Fridays ago and we had broken the 100 day moving average last Friday. I believe today will be a down day and the week and the month should end down. We should bounce a bit at market open but I do not think the bullishness will hold seeing that the indexes had stayed below my MOBO bands for the past week.

I believe we will still be moving back up to test (and fail) the 50 day moving average but historically this could happened anytime between a week to a month. As long as the indexes fail to break within my MOBO bands, this bounce could not happen.

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