Monday, May 18, 2009

S and P Under Pressure, Holding the Green Line (Chart)

June S and P Future, Bar, Chart

June S and P Chart 518

The S and P is banging off the green line, the first area of major support. Overnight, the market hit 875.40 which is the top of a major swing point in the market (865 - 875).

The market remains vulnerable, but the hold at this level brings into question which way next.

On the way back up, 895-900 is the critical level. On the way down, 865 is critical.

Short term it appears that the market will remain under pressure for the next two weeks.

Technical resilance is dwindling and this could be signaling a change in trend to the downside.

The risk reward ratio is not currently favoring short term long positions
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