The United States added 6000 more jobs last week as US jobless claims came in line with analyst expectations, confirming a slow, but steady economic recovery. Dow Jones and Nasdaq reacted positively to the news before falling back before closure. Dow ended down 0.11 % with Nasdaq in positive territory; up 0,40 %. The telecommunication sector led by AT&T and Verizon dragged DOW down. Oil prices recovered on prospects for higher US growth.

So how do we spot a trend?

The indicators that can do so have already been identified as MACD and moving averages.

An oscillator is any object or data that moves back and forth between two points.

In other words, it's an item that is going to always fall somewhere between point A and point B. Think of when you hit the oscillating switch on your electric fan.

Think of our technical indicators as either being "on" or "off". More specifically, an oscillator will usually signal "buy" or "sell", with the only exception being instances when the oscillator is not clearly at either end of the buy/sell range.

Spain’s debt concern

causes global panic

The European debt crisis is back on the top of the agenda dragging global markets down and causing new worries on the prospect for an economic recovery. European exchanges plummeted 2,4 %. The United States saw its worst market day in one month. Asia likewise fall steeply. The only exception was the Shanghai composite increasing 1,37 % on news that China shall ease foreigners rights to held Chinese stocks. This shall probably lead to a bigger influx of foreign capital.

Bernanke again turns

markets upside down

The American and Asian exchanges fall strongly after the Federal Reserve (FED) on Tuesday night presented the protocol from their last meeting stating that further quantitative easing (QE) is not needed for the time being.

The US-markets reacted immediately down. Dow Jones fall with 0,5 %. The Japanese Nikkei was down 1.82 %The negative trend has continued in Europe.

Where Germany is down 1,74 % with steep falls in France, England and Scandinavia as well. The Russian market (RTS) is for the moment falling with 2,17 %.

Relative Strength Index, or RSI, is similar to the stochastic in that it identifies overbought and oversold conditions in the market. It is also scaled from 0 to 100. Typically, readings below 30 indicate oversold, while readings over 70 indicate overbought.