Senin, 07 Desember 2009

SPX (S&P500 Index) is tighening its range - get ready for next move!


Friday's move was accompanied by a high volume we haven't seen since September.

The current consolidation range is locked between 1080 and 1121 and looking at the contraction in the Bollinger Bands I'd look for a breakout move soon enough. Interesting is that there are 3 marginal higher highs ending with Friday last week. Today we didn't have significant test of the downside and Since start of November S&P has been trading above the pivotal 20-Day MA.

There is a slight divergence with the falling RSI and the rise in ATR is a sure sign for a pending rise in volatility. 1121 level is quite important as being 50% retracement level of the whole move into the 668 lows.

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