Drizzt: long term market analysis is a series once or twice a month where we take a look at longer term trends in the market to get our bearings right on the general direction of where market prices is going.
The price movement is mirroring that of 2011 second half of the year. Lots of bad news, lots of whipsaws. This makes life for investors difficult.
Weekly S&P500 and STI
The long term indicator we use is the cross over between the 17 week EMA and the 43 week EMA. A cut of the 17 week EMA below the 43 week EMA from above signifies an underweight and risk management position. A cut of the 17 week EMA above the 43 week EMA from below signifies an overweight position in equities.
Many would have thought that the Greece voting on June 17 would be the selling climax but markets ...
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