Thursday 26 March 2009

Still Running up Against Resistance

It was a more volatile day in the equity markets yesterday but not much has changed from my point of view. The cash S&P500 remains just below a band of resistance (825-837) with a bearish divergence present between the RSI and Composite indicators (chart shown yesterday).

From a time perspective I still feel it most likely (68% chance) that the wave up from the March 6 low of 666 will end by tomorrow (Friday). The move lower during the day yesterday (down to 791.37) now becomes the point that would mark a trend reversal. Under our current roadmap a move below that level would trigger a bearish stance.

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