Wednesday, April 30, 2008

SPX - Text Book

The SPX has decided to pause where the downward trendline and horizontal resistance intersected.

Today's price action created topping tail on the SPX daily, further confirming the Low Close Doji (LCD) on the daily chart (short term bearish).

If the price action is lower tomorrow I'll be looking for support at the 100MA on the daily which is at about 1377.

The short term uptrend is still intact so lets watch to see if this is just a minor pullback or if the sellers really step in to resume the longer term downtrend.

... The intermediate downtrend is still intact too! (conflicting trends on different time frames may create some battles that create another area of consolidation)


SPX Daily Chart:

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