Tuesday, October 28, 2008

Stock markets rebound with bullish divergence.

The picture above shows 6 months chart of S&P 500 (SPX). Buying appetite is pushing indexes up. There are not positive news on street today. Consumer confidence worst in decades. But this market is just simply oversold and bargain hunters are choosing this Tuesday for picking up undervalued stock. At the chart you can see interesting pattern in S&P. Very strong bullish divergence with RSI. Similar picture can be seen also with Dow or Nasdaq.


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