Wednesday, August 15, 2012

Monthly R1 pivot

The S&P rally has stalled at the monthly R1 pivot point at 1405.50. That's where the smart money is taking profits, after buying on the monthly pivot point at 1365, a few weeks ago. I would not be surprised to see a pullback to the 20 day moving average at 1381-1385. The 8 day has been support and a break there would signal a test of the 20 day. Until then, buy the dips!