Wednesday, May 27, 2009

SPX Failing from Below The Trendline?

I have no idea what the last hour has in store for us, but as of right now, this is what I see.

Here is the hourly chart on the S&P 500, since the March 2009 low.
The Blue Line has been trendline support for the majority of the rally. It has now been breeched. Normally what happens in a maturing trend is that one a trendline fails, price rallies up to touch it before rolling over – to “kiss it goodbye”.

This is a potentially very Bearish pattern on the Hourly Chart. Support could be tested at 828, 797 and 766. That would be the “retracement” I have been looking to use as my buy point. We’ll see how it plays out.

No comments: