The Canadian Technician

A New Bull Rally... Do You Agree?

Greg Schnell

Greg Schnell

Chief Technical Analyst, Osprey Strategic

This is one of my favorite methods of analysis. I like to stay aware of the MACD levels relative to historical norms.

$SPX 20121128
The Green arrows represent bounces from this level that happened in the SEP/OCT/NOV time frame.

The black arrows mark bounces from this level at other times through a year.

The reality appears to be that when the MACD is pulled down this far by the investing community, there is usually enough ammunition for a big bounce. The S O N months, have 17%, 22% and 28% rallies from this level.

The other months produced rallies of 15%, 10%, 7%, 15%. 

The market has been quite resilient the last 3 days so someone is buying the intraday lows. 

Remember to enrol in the stockcharts university classes. The link is on the home page.

Good Trading,

Greg Schnell, CMT

 

 

Greg Schnell
About the author: , CMT, MFTA is Chief Technical Analyst at Osprey Strategic specializing in intermarket and commodities analysis. He is also the co-author of Stock Charts For Dummies (Wiley, 2018). Based in Calgary, Greg is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the CMT Association and the International Federation of Technical Analysts (IFTA). Learn More