Thursday, September 2, 2010

Gap up buy signal

The Dow Jones gaped up yesterday, off the Yearly Pivot Point(purple line marked P and blue arrow) at 9950, trapping the shorts. The S&P did the same on the Yearly S1 Pivot at 1040(per Sunday's blog). We are back on a buy the dips buy signal, as long as 10200 holds. That's about the middle of yesterdays big up candle. The 20dma above is resistance at 10300. The Monthly PP is at 10219, which should be support now, and the Monthly R1 pivot is at 10525, which is next resistance. Also use the 8ema as the trend line. This trend should last to the new moon on Sept. 9th.. Open gaps/targets above are at 10415, 10650, 10700(see blue circles). A close below 10200 will bring us back down to the 10,000 gap.