Technicals | Mar 01 2013
It has been a long, relentless rally upwards and along the way experts have either changed their bearish views or continued calling for a well-deserved market correction. Samuel Beckett, the author of En Attendant Godot (Waiting for Godot), has been wearing a big smile from up above.
However, today (Friday, the first trading day of March) the TechWizard's proprietary trading system has pinged up a so-called DP Sell Signal. Time for a correction warning? The Wizard certainly seems to think so.
It is his observation the sell signal comes at a time of divergence on the MACD. This, reports the Wizard, is signalling that all is not well with the Dow Jones Industrial Average.
The Wizard is not mincing his words: expect a correction of at least a few hundred points, he warns.
The Wizard will be watching closely trading action in US equities tonight. He says it may well be today's market action will determine the direction for global risk assets for the next few weeks.
The TechWizard is the pseudonym of Scott Morrison, whose experience in financial markets exceeds twenty years. Morrison operates his own website nowadays at www.techwizard.com.au. All views expressed are the TechWizard's, not by association FNArena's (see our disclaimer).
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