Thursday, June 10, 2010

I've seen this movie before

Very good action bullish today but not too much has changed at the technical level. SPX has managed to overcome the resistance around 1075 and closed exactly at the major downtrend trend line. We need to see SPX above 1,107 (where the SMA200 stands now) to give bulls a chance on intermediary or long term time frames. On 30 minutes chart we have conflicting results, price is as close as ever to the 5 day moving average (bullish) but the MA is declining so be very cautions out there.

NASDAQ it's one more time a little bit above SMA200 but we need to see both DOW and SPX doing the same thing. Briefly climbing above SMA200 doesn't mean anything, staying above SMA200, that's the challenge. Again I am not overly excited about today. I need to see more bullish action to make me go long again. What bulls need to do now, more than thinking about going above SMA200 is to defend the lows seen this week. Keep an eye on 1055 and 1045, the most obvious potential support level also on 1,100-1,110 where there is a huge resistance.

All the best!


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