Stock Market Resumes Its Downtrend

Clients are short positioned since January 21, when our trading system signaled an entry opportunity to exploit the coming downside in the markets. We are still holding this position completely untouched ever since. If you want to learn more about Dynamic System (which has returned 61% in 2009), visit our homepage.

As trend followers, we try to hold onto this trade for as long as possible. I would like to give a short update on what is currently being observed: A very visible uptrend channel in the SPY, which took shape since mid-August, has been violated today. Another reason for concern is the break of the multi-month support level at around 109.00. Both of these breaks signal more intermediate weakness ahead and do not happen for no reason.

Yesterday’s announcement by the Federal Reserve to leave the interest rates unchanged was celebrated with cautious enthusiasm initially. It dissipated entirely today and we are resuming our downtrend.

Category: Stock Market