Friday, September 3, 2010

"Buy" signal confirmed

We had the confirmation today that a new wave on the upside is taking place (EMA25 crossed EMA50 on 60 minutes chart). 

Daily DMI is also looking good, still on red but with today move up (as the future indicate) it may move into the positive territory. We do have now a multi-month uptrend line around 1055 and a multi-months downtrend line around 1105 that also coincides with a very important resistance level. I do expect SPX to stay between these two lines next week. Of course a break on the upside (above 1105) is going to be bullish with the next potential resistance levels around 1115 (SMA200, and good volume according to "volume at price") and 1130, a level where two big upside waves got killed in the recent past.


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