Gotta love ZERO RISK in the SP500 = $$$
- Thread starter makloda
- Start date
Bearish divergence’ is warning investors not to buy the dip in the stock market
http://finance.yahoo.com/news/bearish-divergence-warning-investors-not-140437543.html
The first area of potential resistance at the January lows was tested during last week’s bounce and held firm. Above that, the March and July lows around the 2,040 to 2,045 level should prove difficult to surpass.Previous support morphs into resistanceOn the downside, the 1,815 level could be important for the long-term outlook. That’s where an uptrend line drawn off the March 2009 low currently extends.Below that, the 1565-1575 area sticks out on the charts for two reasons:Where will the S&P 500 stop falling?• The first key retracement level based on the Fibonacci, or “divine ratio,” is around 1575. That represents a 38.2% retracement of the rally off the March 9, 2009 closing low of 676.53 to the May 21 high of 2,130.82.• The S&P 500’s Oct. 9, 2007 closing high was 1,565, just before the Great Recession hit. That should have morphed into strong support.
http://finance.yahoo.com/news/bearish-divergence-warning-investors-not-140437543.html
The first area of potential resistance at the January lows was tested during last week’s bounce and held firm. Above that, the March and July lows around the 2,040 to 2,045 level should prove difficult to surpass.Previous support morphs into resistanceOn the downside, the 1,815 level could be important for the long-term outlook. That’s where an uptrend line drawn off the March 2009 low currently extends.Below that, the 1565-1575 area sticks out on the charts for two reasons:Where will the S&P 500 stop falling?• The first key retracement level based on the Fibonacci, or “divine ratio,” is around 1575. That represents a 38.2% retracement of the rally off the March 9, 2009 closing low of 676.53 to the May 21 high of 2,130.82.• The S&P 500’s Oct. 9, 2007 closing high was 1,565, just before the Great Recession hit. That should have morphed into strong support.
Careful, if you drop far enough, you land on S2007S and Nitro.
Partly gut instinct and having looked at various equity markets monthly charts.