Tuesday, December 9, 2008

Technically bullish.

Before the end of the year technical picture for major US stock indexes shows couple of bullish patterns. Dow Jones Index is approaching 50 days moving averages which gives good long term indication. 3 months chart below shows another bullish formation "Head and Shoulders". If we look at price indicators like RSI or MACD we can see bullish divergences for most of them.

Before this week started, bearish technicals signal descending pattern in lower high. But this has been reversed by higher high after Monday's rally.

Are we heading to end year rally?


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