Friday, July 2, 2010

SPX update: July 1, 2010

Well I do declare….

Well besides that "The Office" is now dead…

I do declare victory! Prices today the SPX touched low 1000's. MACD arguably has downward momentum as long as RSI can go undersold for a week or so. However, the ONLY time in the past 3 years that we have seen RSI stay below 30 RSI (undersold territory) was throughout the 08 crises. Which bodes well for the bullish people who believe support may hold at 1000.

However the bearish evidence continues to mount. 200 convergence above 50 SMA is sure to come with further moves to the downside. However, I wouldn't be surprised to see short covering tomorrow as support approaches. Into next week though, with the cross of SMA's we may even see break into 1000 support, and MACD certainly shows that downward momentum has plenty of room to fall, as zero balance has hit far below 0 during 2008.

If my previous Head and Shoulders analysis is indeed correct prices should correct to 950.

Whether or not this will happen… I will have to get back to you on this as this requires more analysis. I will watch how friday plays out into monday.

For today, I'll celebrate this little win … and continue to cry over my forex position I'm still managing… but more on that later.

**Check my performance from my previous Post's; tell me if I wasn't clear or If I have flip flopped, from what I gather though I have been rather clear. "Previous Post Here"<----**


Alexander Lê
Managing Partner
Analyze Capital LLC

1 comment:

  1. This should help your FX position:


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