The S&P went up to our 820 target yesterday and now the rally has stalled. The market is very overbot and a test of the daily 50day moving average(blue line) could be next. The 50 day has been resistance(white circles) for 3 months. Now that price finally broke above the 50day, a retest of it that holds would be bullish. Why? because that's the spot big money should be buying at. If we see big money come in there, we know this rally has more upside. Watch the 784 area for 1st support and 741(20 day, yellow line) as 2nd support and as the line in the sand for this rally.Tuesday, March 24, 2009
S&P looking for a pullback
The S&P went up to our 820 target yesterday and now the rally has stalled. The market is very overbot and a test of the daily 50day moving average(blue line) could be next. The 50 day has been resistance(white circles) for 3 months. Now that price finally broke above the 50day, a retest of it that holds would be bullish. Why? because that's the spot big money should be buying at. If we see big money come in there, we know this rally has more upside. Watch the 784 area for 1st support and 741(20 day, yellow line) as 2nd support and as the line in the sand for this rally.
