RTS is Selling BIDU and Buying ALXN in its place on Monday 2/3/2014
So far the sell off has been nothing more than a garden variety profit taking pull back in a powerful bull market. There is a critical support at 1770 for SPX. Chances are good SPX retests that support on Monday and then rallies to a strong resistance (triple resistance, shown by orange circle) around 1800, possibly by Tuesday or Wednesday.
Possible Senarrios for this coming week:
- (A) Bearish Case (20%): A close below SPX 1770 would signal more selling to test Primary Uptrend Line (PUL) around 1750. A close below PUL would be bearish and would signal a test of 200 D-SMA.
- (B) Bullish Case (80%): Support at 1770 holds, SPX rallies and closes above its 50 and 20 D-SMA. Rally continues to Primary Downtrend Line (PDL). A close above PDL would signal new all time highs for all major indices.