Technical talk: Not convinced that corner has been turned

 EmailPrint This Post Print This Post

The comments below were provided by Kevin Lane of Fusion IQ.

As seen below the S&P 500 Index finally bounced near support (1,172), which was a convergence of support and the rising 50-day moving average (red lines). Internals were not as impressive as the point gain, thus we are not convinced that this corrective wave is over yet. We clearly need to see follow-through on better internals to be convinced the corner has been turned. Any move below support in the 1,172 area would open risk for a move down to 1,150.

As seen in the 31-day chart below the S&P 500 got back above its minor downtrend line near 1,195 (red line), which is a start. However, until the S&P 500 can get back above resistance in the 1,205 to 1,208 area (green line) we remain a bit cautious about engaging the bounce.

Source: Kevin Lane, Fusion IQ, November 19, 2010.

Did you enjoy this post? If so, click here to subscribe to updates to Investment Postcards from Cape Town by e-mail.

More on this topic (What's this?)
Nearly 70% Of S&P 500 Stocks In Correction Or Bear Market Territory
S&P500 Getting Ready to Break
S&P Approaches Critical Tipping Point
Read more on Corner, S&P 500 (SPX), Airiq Inc at Wikinvest
OverSeas Radio Network

Leave a Reply

You can use these HTML tags

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

  

  

  

Top 100 Financial Blogs

Recent Posts

Charts & Indexes

Gold Price (US$)

Don Coxe’s Weekly Webcast

Podcast – Dow Jones


One minute - every hour - weekdays
(requires Windows Media Player)
newsflashr network
National Debt Clock

Calendar of Posts

November 2010
MTWTFSS
« Oct Dec »
1234567
891011121314
15161718192021
22232425262728
2930 

Feed the Bull