SPX stalls at natural resistance, 61.8% projection March (1485). The index has also traded seven days away from its 10 day moving average, which is very bullish but also invites gravitational pull. I don't pay too much attention to overbought/oversold readings (if you did recently, you missed out on sizable gains), but RSI above 80 is supportive of a pullback. Bears should not get too excited though, drops to 10 DMA will be most likely be bought. But the media is finally jumping on board, with happy headlines, so a little caution is warranted.
May should be bullish and SPX 1500 will most likely get tagged but as usual, we let price decide.
This entry was posted
on Saturday, April 21, 2007 at 4/21/2007 12:29:00 PM.
You can skip to the end and leave a response.
» Post a Comment