RSI Buy signal

It looks like we may be getting there.
We have a shadow formed (so far) at the bottom of the BB.
VIX has been on fire. It needs to turn back down. VIX CHART
Slower players may subscribe to Terry's comments below: "see what happens after the first up day"

Friday Morning 8AM Jan 22 2010 Comment for Jan 21 Close: Forecast remains bullish until the S&P reaches the chart Objective at the upper red envelope, now S&P 1168-ish in the table.

The decline caused by the expiration of the small red T has now reached a plausible low zone. The Volume Oscillator has reached an oversold condition down near the red dashed line, and the Arms readings are sufficient oversold.

Over the next day or two some confirmation of a turn is needed, however until then the Green AD Line correction is not unusual and the Third T is Bullish. We just need to wait to see what happens after the first up day. A one day day rally won't provide the confirmation.

Terry

See Chart at LINK




RSI systems nearing oversold:

http://stockcharts.com/c-sc/sc?s=$SPX&p=D&yr=0&mn=9&dy=0&i=p64748743953&a=94546561&r=278.png

Edited by Rogerdodger, 22 January 2010 - 11:21 AM.

Not technical, But if the 'bears' can't take their oppotunity here at this point.......Then tis most 'bullish' (for first half of year)imvho (1)..Chart looked ready for a decent correction(8/10%) (2)...China making loud noises about over-heating/inflation and clamping down. (3)...Less than warm market welcome the present 'earnings-season'. (4)...Plus what's in the pipeline for the 'boyz' after yesterday thanks to the US Government . Regards.V P.S.....Has put me right off my "50dma" buy-trade.....

Roger I'm on the same page, bottom at close or Sunday night, then up to Terry target probably on Feb op ex. I sold my 1847 1/4 long for -5 and I setup limit buy lower, earlier I almost got them filled.

Edited by espresso, 22 January 2010 - 11:49 AM.

They have been good at pumping it up before the Monday open. Will Monday be different this time? You never know, I wouldn't be surprised to see an a-b-c type of bottom. TWT

Dow needs to rise over 100+ points from here to close the week out back above its '50dma'>>>10455 Regards.V