Brokers Break Down on Rising Volume
Monday, February 26, 2007 0:32Posted in category 50 Day Moving Average, AMEX Broker-Dealer Index, BSC, Bear Market, Charts, Crash, Finance, MACD, MER, MS, Money, RSI, Special Reports, Stock Market, Technical Analysis
February 26, 2007
There’s an old saying on Wall Street–”Where the broker-dealers go, so goes the market.”
After a day of heavy selling pressure, the AMEX broker-dealer index broke below the 50 day moving average. This is not a good sign for the health of the market.
Below we see the index breaking down after todays trading.
The following charts of Bear Stearns, Merrill Lynch, and Morgan Stanley look very similar–50 day breached, momentum rolling over, and RSI continuing to decline.
This bull run is on borrowed time!
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Gone in 60 Days: Citi and Bank of America Won't Live to See May | Charting Stocks says:
February 19th, 2009 at 4:21 pm
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Gone in 60 Days: Citi and Bank of America Won’t Live to See May? « Behind-the-Matrix says:
February 22nd, 2009 at 6:02 am
[...] warned of the coming stock market crash at a time when the market was making new all time highs. In February 2007 we warned about the breakdown of the brokerage stocks and singled out Bear Stearns (Trading at [...]
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