Monday, May 3, 2010

SPX Technical Update: May 3, 2010

This one goes out to my buddy Sauros who loves reading those candle sticks.

Multiple confirmation on a bearish reversal.

Most significantly an old uptrend broken with long term resistance.

Though typically its not my style...

Two candle stick indicators confirm this bearish reversal: an abandoned baby (I wonder who names these things) along with a dark cloud cover followed by bearish price move confirmation and bearish volume confirmation.

Against my short thesis is the 50 SMA which could pose significant support and currently the 50 RSI support is holding. However, this would all be inline with my exceptions of an overall 5% correction on the SPX.

Lets see if prices continue down!


Alexander Lê
Managing Partner
Analyze Capital LLC

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