75 weekly

One of our readers mailed me a chart showing the 75 week moving average.

I reproduce the chart for you.

I'm not a big fan of moving averages for shorter term trading, their utility lies in identifying trends.

However the 75 week moving average has long been considered a dividing line between bull and bear markets.

The above chart shows a 75 week average against a weekly chart of the Nifty spot.

Besides the average what I found interesting was the pattern developing in September 2008 against this one in 2011.

My time cycle counts put us in a new intermediate cycle which should be in week 2 by now. The cycle projects a consistent range of 1000 points for a quarter, which means that should we not fill that gap between 5060 and 5110 we should be forming a left translated cycle which should take us to 42xx by the year end.

Back to the subject of the 75 weekly, let me put up one more chart :

This is the USD chart at the 75 weekly.Clearly shows that it still has to overcome it to be considered a bull market.Once this chart starts moving northwards, equities should begin a waterfall type decline.

A shorter duration  chart of the USD futures ( not uploaded here) , shows that should the dollar penetrate 79 early next week, it should have an easy ride to 80.5 and 81 which means that stocks the world over will be under a lot of pressure through the week.