Friday, December 4, 2009

SP Hits 50% Mark and Retreats

Today's SP high was a .497 retrace of the whole move down from 1576 to 666.There has been consistent and  multiple 14 D RSI divergence since mid Sept.
The unexpected "good" news  fails to generate a sustainable rally.

click on chart to enlarge

Short term, the afternoon bounce looks like a zig zag 2 wave. Another leg down can EASILY test that long term rising support trend line around 1080.

After an extraordinary rally that looks extremely tired, it's time to lock in that bonus.

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