Tuesday, December 7, 2010

A bearish closing

After rallying 12 points in the morning SPX almost close on red today. This was almost a reversal day, when market reaches a new high (SPX went above November 8th high) then closes in red. Volume was pretty good today and mainly done by the sellers in the last 90 minutes. Bears may have a chance here. But let's not anticipate! SPX remains bullish on all time frames. Price is above both EMAs and above rising SMA 120. DMI is also extremely bullish on daily and weekly charts.

It is very important for the sake of the long term rally that SPX manages to close above November 8th high and by that I don't mean 3-5 points up but something substantial 20-30 points before another correction.

The dollar went up a little bit today. It still has a bullish EMAs crossing and daily DMI is slightly green. Weekly DMI is still on red meaning that the long term momentum is not bullish yet.

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