Friday 21 May 2010

Daily SPX - On the Verge of a 'Sell'

Remember the SPX daily chart? Do you recall that we never got a chance to get a ‘sell’ signal because the break of TDST support (on ‘flash crash’ day) was never confirmed (we bounced right back)? Well, that signal is close to being regenerated. It will take a close below the low of 1065.79. Meanwhile:
- Still waiting on a price flip on daily 10 year bond yield
- GLD, daily chart. A ‘sell’ generated on 5/19 at 1223.80. We hit the intermediate moving average yesterday at 1176.59. Using Parabolic SAR as the stop loss level now. It stands at 1246.35. I think a bounce up is coming.
- SPX, Weekly. ‘Sell’ signal from 1122.27.

The equities, as measured by the SPX, are facing important support levels on both the weekly (1069-1075) and daily (1045-1050) charts. The long term moving average on the monthly chart is now at 1058, right between these two support levels. Can the bulls hold?

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