At 1:25pm (Mountain), the SPX at 869 appears to be trading above R1. In my opinion, a close above 872 or so will be a pretty clear break of R1. Since we're so close, it's going to be impossible to know at my fund cutoff time whether the close today will be a breakout and therefore I will not assume so and will not take a long position today. Selling could still easily come in near the close and take the SPX clearly back below R1.
Thursday, April 16, 2009
Trading above R1
At 1:25pm (Mountain), the SPX at 869 appears to be trading above R1. In my opinion, a close above 872 or so will be a pretty clear break of R1. Since we're so close, it's going to be impossible to know at my fund cutoff time whether the close today will be a breakout and therefore I will not assume so and will not take a long position today. Selling could still easily come in near the close and take the SPX clearly back below R1.
