1 October 2009 – Price confirms momentum

ASX Commentary

1 October 2009 – Price confirms momentum

Fri, Oct 2, 2009

We’ve been discussing the loss of momentum of late and that our momentum indicator was rolling over but needed to be confirmed by price. We got that confirmation last night. The DJIA dropped 2% but the broader indices dropped further. The selloff cam on back of weaker jobless claims data, making it three days in a row for weak economic data. Obviously this selloff is in anticipation of tomorrows Non-Farm Payrolls data. On many occasions this year we’ve pointed to a deeper correction and almost every time the market has rallied back without gaining too much downside traction. All position we hold are at breakeven or better.

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Nick Radge - who has written 899 posts on The Chartist.

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