Monday, October 22, 2012

Make or break time

The Dow Jones and S&P indexes both closed last Friday on the 50dma and the old resistance level from last spring. Will it be support again, like it was last week, or will it break down?  If we break down next strong support/demand level is 13055(MS1) and open gap. We should know very today! If we hold we might rally back up to the open gap at 13550. Watch AAPL for a clue.


The 50 day broke this week after a double top at the yearly R3 pivot point. Look for a pullback to the 1400 open gap or monthly S1 at 1392. Open gap 1428 above.