Now it's at 34%, the lowest since that bottom.
RSI touched 30 back then, just as it did this week.
We could get some sloppiness probing down here as we did in late August, who knows for sure.
But a stop in this area seems like a no brainer.
http://stockcharts.com/c-sc/sc?s=$SPX&p=D&b=3&g=0&i=p41261564129&a=236469748&r=6922.png
Laundry's channel bottom was around 1280 for this week.
RSI is at 30 which has been a bottom area the last few times it touched there.
But that long trend line was broken and back kissed.
With this being WWW, hang on to your hats.
Rogerdodger
May 24th
The BBs have began to flare on a down move.
In the 2 other examples shown in the chart below, RSI 12 had to drop to 30 before a bottom was reached.
I'm thinking this might be similar.
I see no reason to get too excited on the long side until that downtrend line is broken or we get some extreme downward action followed by signs of stabilizing.
http://www.traders-t...?...=130994&hl=
http://stockcharts.com/c-sc/sc?s=$SPX&p=D&yr=0&mn=10&dy=0&i=p88060203721&a=94546561&r=7731.png
Edited by Rogerdodger, 09 June 2011 - 09:48 AM.
