Thursday, June 27, 2013

SPX Is Coming Up Against Stiff Resistance

The rally in the last three days has been impressive. We saw excellent breadth, decrease in number of new lows and small caps significantly outperforming.  SPX has now reached a stiff  resistance band (1620-1635) that is crowded by 20/50 D-SMA's and primary trend lines. Chances are good that after an initial rally tomorrow, SPX is pushed back down to retest support at 1600. 

My plan is to do my  fourth and last buy if we have  a successful back test at SPX 1600.

Disclaimer: The views expressed are provided for information purposes only and should not be construed in any way as investment advice or recommendation.  Furthermore, the opinions expressed may change without notice.