Wednesday 23 March 2011

SPX Daily Chart - 22 March 2011

     Resistance was provided by the short moving average (red) yesterday and the previous close above the TDST support line at 1286 was not qualified. Does this mean the bounce is over? No. It only implies that the bulls are being challenged at this point. A continued climb would next point to the medium (blue) moving average at 1312. Key to any longer-term bullish hopes would be a qualified break of the TD Supply line (downsloping dashed red line) which is at about 1314 today.
     Over the near term my expectation continues to be that a buy setup will have to form before we can make a meaningful move to the upside. As of now this can not happen until early April.
          Bottom Line: The daily chart remains bearish with the Timeframe Mix at a +50% reading.

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