Tuesday, March 20, 2007

Important Intraday Rebound

The above chart shows the S&P 500 back at an important test level of the 50% fibonacci area. This 1410 neck of the woods has proven to be tough resistance. Also for the first time since the Feb 27th pull back, the S&P is above its 20 day moving average. MACD has also flashed a turn to the positive and RSI is closing in on 50. It would not be a complete surprise if the S&P made its way to somewhere between the 50% and the 61.8% retracement, which would take it to 1420, so I am wary at this point of shorting into this strength. The equity only put to call ratio is down 26% today to .6 and that's also a big check market in the bullish column.
However, the above is intraday and if the market washes out and fails stay above the 1410 at the close it will be another defeat for the bulls at this level.

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