The Market Will Continue To Probe For Support. As Long As The Trend Is Intact - Line Up Your Longs!
Yesterday, the market continued to slip and now we have four consecutive days of heavy selling. The breakout from two weeks ago has failed and we are approaching a very significant support level at SPY $104. That is the uptrend line that dates back three months. We are currently just above the 50-day moving average. In today's chart, you can see that the recent trough a month ago was deeper than the previous dips. The recovery and subsequent breakout was also smaller in magnitude. Recently, sustained selling pressure has appeared for the first time since July. This price action suggests that …
October 28, 2009
• Posted in: Options
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