SPX closed at 1320.65 above 1300 resistance which is a significant resistance as it is 200 weekly ma and a round number.
We have a sharp reversal day induced by the Fed action.
I have noted that markets are very oversold and was showing positive divergences with extremely negative sentiment; so market action which we have seen today is not a big surprise as we have seen, in the past, sharp reversals from very oversold markets with negative sentiment.
Next major resistance is SPX 1400 +/- which I am anticipating to trade higher.
SPX retest of the low SPX 1270. I noted SPX correction to 1270 +/- during Dec 2007.
We now have the correction and a consolidation period with a retest of the low.
As noted, markets are very oversold and we have a CIT date which is setting up for a good case for markets to trade up.
DOW has reversed at 11650 LT support.
NDX reversal at 1672 which is LT support after a climactic volume action in Jan 2008.
No comments:
Post a Comment