Tuesday, September 7, 2010

Bounce down

As I said on Friday I did expect a move down from the downtrend line (1105) that also coincided with a very good resistance level that gave bulls a lot of headaches in the recent past or at least a lateral consolidation before moving further up. That's exactly what happened today, SPX lost 13 points but we don't have too many changes at the technical level, we still have a bullish EMAs crossing on 60 minutes chart, a rising 5 days moving average and daily DMI remains slightly green. This week SPX may get trapped in between the downtrend line around 1105 and the uptrend line around 1055. On the downside we should keep an eye on 1070, a good support level according to "volume at price" . On the upside the most obvious resistance levels are 1105, 1115 (SMA200) and 1130, the most recent higher high.


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