Might hit the 61.8 Fib Retracement at 11.50 which is just under the 200 day moving average. Volume is very low which tells me there are no buyers and only a small number of sellers. Trend is still lower.
Sentiment: Strong Buy
Stock indexes breaking down today. Supposedly, Syria is the catalyst.
MBI is back in its downtrend on higher volume. If we close below $11.95 today, we will gap down tomorrow.
The "civil war" in Syria looks like a calculated operation to get rid of the Russia-leaning Assad regime. Currently, Russia has a near-monopoly on energy supply to Europe, with Syria being a transportation partner. The goal seems to be to install a Syrian regime that will allow oil-and-gas from Qatar/etc to supply Europe, with the transportation infrastructure being controlled by Western nations. To expect Russia to just give up control of their pipelines and business is laughable. It is pretty clear that Assad's forces did NOT use chemical weapons. So either the rebels did it or it's a false flag. Now, with the West itching to strike Syria, and Russia moving its ships to the region, we may soon be in another avoidable quagmire, but bigger.
IMHO, not a good time to be long stock. Of course, if Obama/etc call off the strike and return to their rhetoric, stocks will bounce back as quickly. Thoughts welcome. GLTA.
This being the third day of "rest" near $12 support, I believe another move is coming. No idea what the catalyst might be - the Fed-talk seems unlikely. Technically, as you know, MBI is oversold, with low volume, and neutral sentiment at the moment. Sentiment and volume must change for MBI to either rally or drop from here.
If it rallies, resistance awaits in a wide band between $12.75 and $13.50.
If it drops, support is at $11.60 (61.8% Fib retracement) and $10.30 (78.6% retracement). Price could turn around from any of these areas.
Thoughts welcome. GLTA.
Sleestack. This is good advice to you...put away your charts. They do not work and provably so. Long ago, the EMH was tested:
"The weak-form EMH implies that the market is efficient, reflecting all market information. This hypothesis assumes that the rates of return on the market should be independent; past rates of return have no effect on future rates. Given this assumption, rules, such as the ones traders use to buy or sell a stock, are invalid. "
MBIA is dead in the water right now due to the Fed.
Ignoring the fundamentals...Technicals are close to showing a bottom. at oversold levels but doenst mean we cannot go lower. if there are no buyers the MM will take it as low as they can to attract buying interest.
Sentiment: Strong Buy