Thursday, November 29, 2007

S&P500

I am waiting to see if yesterdays gap and run was the beginning of the Christmas rally or just a short covering rally. Based on the volume for the SPY I'm leaning toward the latter. We want to see that gap from 143 to 144 in the 15 min chart to fill. That means the prices fall into the range of 143-144. That would also get the SPY back into the downtrend and under it's 8 day EMA. Right now it's under the 200 dma. It will probably stay there. For now stay out.

http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=spy&sid=0&o_symb=spy&freq=1&time=8&x=26&y=14

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