Wednesday, October 28, 2009

$SPX techincals

I still believe the failed head and shoulders break out which sparked the last few months of rally needs to be revisited partly because you would expect a huge surge of volume on that kind of move which did not occur. Also the slower 14 day RSI has flashed a sell signal which is confirmed by the diverged OBV and I noticed that of the 4 recent roll over dips the previous 3 occurred with negligible volume and this last one was accompanied with 6 straight days of heavy volume. Lets not forget price has pulled to record distance from the 200 day moving average which is set to exert it's gravitational pull on the market....

No comments: