After trading eight days above the October downtrend line, resistance turned support, the S&P 500 (SPX) returned to its 2008 bear mode. Not only did the index re-enter the 2007 high downtrend, but it closed below the May opening day low of 1383. As you can see on the chart, the 50 day moving average is a little lower, at 1371.50. There is also the mid April gap at 1365.50/1369. It's a small gap, but add 38.2% March/May at 1370.23 and you can see how important the entire 1365/1371 area will be on Tuesday.
Bonds caught a bid and held it all day, pushing TNX (ten year yield) down near critical support at 3.8%. We will keep track of this bearish development, especially given the evolving head and shoulder outlined Thursday night.
Bonds caught a bid and held it all day, pushing TNX (ten year yield) down near critical support at 3.8%. We will keep track of this bearish development, especially given the evolving head and shoulder outlined Thursday night.
This entry was posted
on Saturday, May 24, 2008 at 5/24/2008 12:31:00 AM.
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