Wednesday, November 28, 2007

Trade Alert2: S&P500

Well the upper downtrend line in the SPY was broken with force, along with the 8 day EMA. If you read the Trade Alert: S&P500 posted at 10:25 this morning you can see this is exactly what I was talking about. A huge gap up giving no chance to enter. We would have had to chance being in last night. Can we get in? Hard to say or where. The stochastic is turning up and still has a lot of room to continue. However we are approaching the 200 day SMA from below and this could provide resistance especially considering that the volume is less than 200 million shares. What I am looking for is a retracement off of the 200 dma to about 145-ish or the top of the prior downtrend line. If it pops up from there we go in. I will not chase this. A picture is worth a thousand words. http://bigcharts.marketwatch.com/advchart/frames/frames.asp?symb=spy&time=8&freq=1

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