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Friday, May 4, 2012

SPX daily update

SPX ended the day just below the key 1370 level.  Lets take a look at the 130 minute chart.

We can see there was some urgency to get out today.   However we have blue bars.  If you read the price bar color info page you know that means we closed below the lower Bollinger band.  This makes price very extended.  So we are at key support in a stretched condition.  Outside of bad news, I would expect the market to consolidate or bounce from here.  It may attempt to fill some of this morning's gap.  However, I think this rally is now broken.  I don't think we will see new highs any time soon.  If we get further down side, we will  likely crash through the April lows from this setup.


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The information in this blog is provided for educational purposes only and is not to be construed as investment advice.