Thursday, June 23, 2011

"New" resistance levels

It's 11:30 am and market is moving down big time. I thought it may be important to let you know what levels we should watch from here, more exactly what are the resistance levels.

On daily chart you can easily spot 1,265, the last lower low made last week which also coincides with SMA 200. If this fail market may find support around 1,256 that represent the March low.

However, going bellow 1,265 is going to trigger a far bigger sell-off and 1,256 is not going to do too much to stop it. I am saying this because a move bellow this level not only crosses SMA 200 on both weekly and daily charts but also violates the most important uptrend line, the 2009-2011 bull market one that also resides around 1,265. So 1,265 is THE resistance level at this point.

Later on, time depending, I am going to show you at what level I would consider that the current bull market has ended.

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