S&P Stock Index Unable to Sustain Strength
Stock-Markets / Stock Index Trading Nov 19, 2011 - 12:30 PM GMTBy: Mike_Paulenoff
As the e-mini S&P 500 circled unchanged near the end of Friday's session, we noticed the price action had failed to lift off of the lower Bollinger Band line at 1206.25 on the daily chart.
In an underlying, very constructive technical set-up, a traverse from the upper BBnd line (1289.25 on Oct 27) to the lower BBnd (1207 on Nov 17) usually resolves itself in a potent upmove off the lower line, which renews the dominant uptrend.
It is very curious that the e-SPZ was unable to sustain strength on Friday that propelled it away from the BBnd line at 1206.50. This makes it vulnerable to the opposite outcome: a resumption of weakness that presses the e-SPZ beneath the lower BBnd line (1206.25).
Under such circumstances, the minimum downside overshoot of the lower line is 1%, which projects weakness into the 1995/94 area next.
Sign up for a free 15-day trial to Mike's ETF & Stock Trading Diary today.
By Mike Paulenoff
Mike Paulenoff is author of MPTrader.com (www.mptrader.com), a real-time diary of his technical analysis and trading alerts on ETFs covering metals, energy, equity indices, currencies, Treasuries, and specific industries and international regions.
© 2002-2011 MPTrader.com, an AdviceTrade publication. All rights reserved. Any publication, distribution, retransmission or reproduction of information or data contained on this Web site without written consent from MPTrader is prohibited. See our disclaimer.
Mike Paulenoff Archive |
© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.
