SandP500 death cross

[SimonPB]

http://bit.ly/bdCfip

[HateGauteng]

Support on the TOPI/ALSI has been holding. Wonder for how long?

[sponono]

alsi needs to open trade and close above 23500 (thursday's high)at the minimum

[ACEP_]

EP, Aargh..

[Blik]

Are we seeing a death cross on the ALSI now?

[#6]

So this leads to an interesting question - can a bearish TA signal actually 'cause' prices to drop? If there are sufficient TA's out there, then I would say that the principles of cause and effect could possibly apply, but I somehow doubt that there are sufficient TA's out htere.

[SimonPB]

ya you most likley right .. but equally a lot of traders will only trade short now .. also when below 200 day MA .. so to a degree maybe ..

[#8]

So then this leads to another hypothetical question - if the bulk of the trading population decides to go short now, I don't see how that scenario will 'cause' a market to drop. If everybody decides to short, then maybe there are no buyers and prices drop - but in theory there are also no real sellers either - since a distinction has to be made between a short seller (who is looking for the highest possible price to enter a position) vs a stock seller (who is looking for the highest possible price to exit a position). The latter will be far more inclined to take any price - thereby letting the bears win, while the former will only enter if his price is reached.