Monday, January 30, 2012

Some bearish action

Another small pullback today but long term remains bullish. "Golden cross" already happened on weekly chart but not on daily chart. On daily, the two SMAs are touching and they are probably going to cross each other by the end of the week. The next support level on this time frame is around 1,288.

The intermediate time frame was challenged today for the first time since December 20. SPX moved bellow EMA 50 on hourly chart, touched SMA 120 (1,300) then immediately moved up 12 points to end just a little bit above EMA 50. The intermediate time frame switched to neutral. Another move down tomorrow and we are going to see the EMAs crossing each other. On intermediate time frame the best support is around SMa 120 (1,300).

Gold and silver also moved down today. Silver still looks weak to me on long term but gold has made huge progress lately as evidenced by the weekly DMI that once again is positive. Also notice that gold has moved above the main downtrend line.

Tomorrow is an important day technically speaking. If SPX moves bellow SMA 120 and EMAs give a bearish crossing we may see an end of the current intermediate time frame bullish momentum. However, long term bulls still look good.  Let's see what is going to happen.


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