The SPX is testing the important downtrending resistance line R1 (chart below) right now as we near the close. On a shorter term basis a line of support has formed ST-S1. If R1 turns the SPX lower here, an uptrending channel will form with the upper bound being ST-R1.
I do believe that the SPX will eventually break out above R1 but I will not be buying today in any case as I'd rather be patient, wait for the break and buy the first signficant pull-back.
Monday, April 13, 2009
Testing Resistance R1
The SPX is testing the important downtrending resistance line R1 (chart below) right now as we near the close. On a shorter term basis a line of support has formed ST-S1. If R1 turns the SPX lower here, an uptrending channel will form with the upper bound being ST-R1.
I do believe that the SPX will eventually break out above R1 but I will not be buying today in any case as I'd rather be patient, wait for the break and buy the first signficant pull-back.
