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Unstable State
September 16th, 2008 at 4:12am · No Comments
I’m just putting up one of the eMini charts here. The market is near or below all the lower channels in he futures and the cash index. The channel on the weekly is at 1187, identical to the reading on the 135 minute chart here. This chart shows something else that is interesting however. The two sharp rallies this month, ech over 50 S&P points, combine on the chart to depict a market that is in an extremely unstable state. Look at the modified DMX indicator line (yellow) – compare it’s more slow and casual meandering on the left of the chart to the violent swings its currently experiencing. I am concerned that the apparent illiquidity that allows for such swings is a precursor to still sharply lower prices ahead.
Tags: General Market Commentary · S&P 500
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