The line in the sand for the bears right now is SPX 1070. A CLOSE (not just intraday penetration) above that number would wreck the current downtrend. The bulls have successfully pushed prices back up since the last push down by the bears.
After 1070 SPX is held and sustained, 1080 test is likely, and the pattern projects to 1104 SPX.
However, an equal possibility is that a double top forms at 1080, or even 1070, and prices make lower lows. Also, if the bears are able to hold SPX under 1070 (preferably 1063), then the downtrend is still valid which suggest lows below 1021 to 1003 eventually.
The charts certainly look bullish the last several hours, but the bulls need to seal the deal, or the bears need to hold down the advance. We are likely to find out soon.
* ChristopherStockGuy is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. For details, see the post from SATURDAY, AUGUST 15, 2009 titled "Disclaimer".
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