Monday, June 6, 2011

SPX 1300 the line between Bulls and Bears

The SPX index closed just above the 1300 levels on Friday.  The candle was full body down with a negligible uptick from the lows. This shows the kind of pressure in selling.


The  last few attempts at 1300 were defended except for the sell off in March. And there is a very remarkable similarity between this and March's candle. Both were full body downsize candle. The other two attempts exhibited a bullish hammer at 1300 levels.



Will we break the 1300  levels this time and give a conclusive close below those levels?
Well the kind of candle does indicate sellers in control of the market with 3 consecutive bearish candles below the 50 SMA.

Any follow on below friday's low with bearish hourly candles is a sell opportunity.

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