Thursday 11 September 2008

Important to Watch the Early Trading Today

The cash S&P500 formed a downtrending price bar on its daily chart yesterday. However; the closing price was up, and so we formed bullish divergence between price and the RSI and a technical “buy” signal is now in place.

That being said I certainly wouldn’t act upon that signal first thing this morning! This is indeed an interesting technical “buy” signal as the futures are down over fifteen points this morning (8:00 EDT). It looks like we may need to test the 1211-1225 area one more time – or it may be a bear trap going into the open. Let’s watch and see.

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