Beaware of the correction part 2-The bullish camp

Some bullish reactions from members of the Belgium Association of technical Analysts:

My own graphs... With confirmation than the RSI simply said that we are in an "oversold" situation.
Not more, no signal to sell nor to buy puts.

Jacques DEFRANCE

I am also bullish for the long term. A short term correction is of course always possible but it would be mild because the US stockmarket is close to the equilibrium right now.
The term "Stress" is used in terms of financial instability, as defined by F. Mishkin. For further explanation about this graph, go to my new blog : http://profitip.blogspot.com/2007/01/new-stabilization-tool-for-stock-market.html

Bernard Leclere

These charts also show negative divergences since November and these divergences just show less upside momentum, which is not bearish. There is no downside momentum to speak of yet. I imagine that the Dow will break support from the late Nov-early Dec lows when RSI moves below 45. This would constitute a medium trend reversal and I would then expect a retracement of the advance that began in July . The trend is in place until proven otherwise. An oldee, but a goodee!

Arthur Hill


Sur l'Eurostoxx 50, la zone de soutien comprise entre 4072 et 4123points continue de jouer son rôle. Hier, les flux baissiers ont de nouveauété contrés et ont conduit la séance vers un chandelier en quasi-doji.Les prises de bénéfices ne parviennent donc pas à dominer très longtemps et l'indice européen semble désormais en bonne posture pour revenir attaquer activement la résistance à 4195 points au cours des prochaines séances.

Jean-Christophe Dourret-Analyste technique.