Tuesday, April 10, 2012

March Lows Will Very Likely Tested

SGS is NEUTRAL (As of close of 3/6/2012)
In CASH (closed all positions @ SPX 1254 on 12/22/2011)

 A review of major indices:
  • NAZ: At 50 D-SMA Support
  • DJI: At Early March Lows Support
  • RUT: At Early March Lows Support
  • DJT: At Early March Lows Support
  • SPX: At Primary Up Trend Line (orange) Support
After five down days, indices found strong supports to close on today.  It's highly likely that SPX rallies from its oversold condition tomorrow or the next day to back test its 50 D-SMA around 1370.

I believe there is more selling coming our way after a possible relief rally.  Most large cap high fliers (AAPL, PCLN, SBUX, FAST, FFIV, ROST, HD, etc.) and high volume index trackers (QQQ, SPY, DIA, IWM, etc.) put in relatively long solid red candles with higher volumes.  Big Money is stealthily unloading long positions because he knows he can secure those positions at a lower cost later.  
I expect SPX to test its lows of last March (around 1340) sometime this week.  I'm still in cash and watching.  I would definitely post here should I decide to open long or short positions.

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Disclaimer: The views expressed are provided for information purposes only and should not be construed in any way as investment advice or recommendation.  Furthermore, the opinions expressed may change without notice.
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