Wednesday, June 8, 2011

S&P Technical Picture

Below is one possible interpretation of the current market's technical picture.

The study above includes a downward sloping parallel channel, the 220 day exponential moving average (my default one), and RSI-14 below. Note that the 220 EMA and the channel intersect at around 1250. Also notice that RSI is close to 30, an oversold level at which one can expect a bounce. My guess is that SPX will reach 30 on RSI sooner or later.

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