SPX Weekly
Started by
selecto
, Sep 25 2009 05:30 PM
1 reply to this topic
#2
CHAx
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- Traders-Talk User
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Posted 25 September 2009 - 11:08 PM
Selecto thanks. Your tool is nice to have on my belt.
Just some musings. If this remains a strong bull trend... the 20 SMA is an important support area for quick and fast reversal higher. Any price deterioration on a closing basis closes the door on thoughts of a strong uptrend in the immediate future (next 5-10 trading days). I would expect something similar to the Mid June price action if we aren't moving higher by early tuesday. Barring something bullish developing, some testing of the lower boundaries of the BB band seems logical. Letting the oscillators get fully oversold seems prudent should this occur. Once (if) that bounce out of oversold materializes, we can start to make projections about likely price action or areas for rally failure (if we have change in trend).
My opinion nothing says oversold on the daily, but *if* this is a strong trend continuation, nothing will get strongly oversold (not on the daily anyway).
Just some musings. If this remains a strong bull trend... the 20 SMA is an important support area for quick and fast reversal higher. Any price deterioration on a closing basis closes the door on thoughts of a strong uptrend in the immediate future (next 5-10 trading days). I would expect something similar to the Mid June price action if we aren't moving higher by early tuesday. Barring something bullish developing, some testing of the lower boundaries of the BB band seems logical. Letting the oscillators get fully oversold seems prudent should this occur. Once (if) that bounce out of oversold materializes, we can start to make projections about likely price action or areas for rally failure (if we have change in trend).
My opinion nothing says oversold on the daily, but *if* this is a strong trend continuation, nothing will get strongly oversold (not on the daily anyway).
Edited by CHAx, 25 September 2009 - 11:09 PM.
