The price action of the last three days, which fits the "bear market rally" description, is not enough to change my thesis of a bear market. See links below.
The third phase
Analog
Commentary
The above analysis suggests this rally is another sell opportunity. I am not sure at what price, perhaps around 1250-1270, but don't hold me to that.
Wednesday, November 30, 2011
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Bear market rallies can go 10-20% up.
ReplyDeleteThe daily SPXU:SPX chart RSI is showing the curling up response that I emailed you about. I am short as of these levels (descending TL, 61.8 retrace, huge resistance), but may cover in a couple of days and look for longs.
Also, the Chinese RR move came from the State Council, the Chinese equivalent of the Politburo. According to the NYT, this signals a policy shift.
http://www.nytimes.com/2011/12/01/business/global/china-reverses-economic-policy.html