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SPY daily market signal Jan 15th

SPY

Trend is down

Minor trend is down

MACD is up

Advisors (both trends) vote to sell

MACD advisor votes to buy

No agreement... Note the bullish reversal candle, hammer

Market is slightly bearish with the minor trend line "under" the trend line. Trading Plan says to wait but watch closely next week.

Price is now below the "bear zone" so we should have made money on the Put play of the past three days.

Note: The circled dark candles are the negative candle bodies in the Bear Zone. A bear zone exits until a change in trend occurs.

The Bull and Bear Zones

In the bear zone find a dark candle, sell below it & the 1% filter














In the bull zone find a white candle and buy above it & the filter of 1%

QLD - Ultra Bull Nasdaq - Jan 15th, 2009

QLD

Trend is down with a Bear Zone.

Look for a dark candle in the

Bear Zone and prepare to sell 1%

under the key dark candle.

The QLD hit a low in Nov. and is in a sloppy inverse Head -and-Shoulder pattern. The Nasdaq is attempting to end the multi-bear market trend. Only if the trend line can turn and price can move higher than the key turn day will the downtrend end.

Market History - S&P 500 1994-2009

This is a picture of the general market over the past 15 years. The S&P (SPY) is a good bell-weather symbol for the market. Most stocks have the same trend performance as the S&P.

Notice the monthly trend line on the chart. Trends tend to last for several years. The last Bear market of 2000 to 2003 lasted about 2 1/2 years. The current Bear market is now one year old. This bear market will not end until there is a positive white candle that closes above the blue monthly trend line.

S&P 1994 - 2009 (Click Chart to Enlarge)

Bull and Bear markets last for several years. The monthly chart of the S&P (spy) shows the beginning

and end of the recent cycles over the past 15 years.

Note where the trend line turns on the chart.