Saturday, February 2, 2008
SOFIX Weekly - 01.02.2008
The 'blue-chip' index SOFIX just like the broader market index BG40 shows more downside to be seen before a strong base is set for a reversal to the long term uptrend.
Basic elements like the cross of the 20 & 50 week MAs confirm this imminent scenario and MACD points to a continuation of the downward momentum.
A good point for a reversal and building a solid base should be the 1150 level where we have a confluence of a Long term trend line support and a major low.
Of course we can't argue with the tape - market will show if I am right or wrong.