- Posted February 3, 2014 by
Stock Market Ready to Plunge
The above chart is one that was posted several weeks ago. Note that prices held on what this reporter refers to as an R1 line. Co incidentally it also held near the 100 day moving average.
Some market technicians have convinced themselves that the 100 day moving average is some sort of holy grail because in the last two years the S&P has reversed near the 100 day moving average several times.
As the market travels lower the 200 day Moving Average will come into view and if prices go through the line quickly it will be perceived as a crash of sorts.
This reporter uses the new Andrews Pitchfork< indicator as well as Innovative Physics with Babson Lines for determining the probable support points, and is still keeping an eye upon the lower line in the above chart.