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Tuesday, May 12, 2009

Between 875 Support and the 200DMA

http://www.marketwatch.com/story/technical-battle-lines-being-drawn-on-the-sp-500

I like Michael Ashbaugh he is a very good straightforward technician who provides very dependable support/resistance levels and market outlooks. Every once in a while he provides a free analysis column. Mostly he just shows you what the hand is at any one moment, he rarely makes predictions.

He talks about the S&P500 strong support at 875 and (likely) strong resistance at its 200SMA which I have mentioned a lot and how the market is trading in between.

His article explains things nicely in a nutshell that the SPX is stuck trading between the two for now. Perhaps we have entered another significant consolidation/shakeout period. Sideways grind with whippy moves taking out stops both ways. As Waxie likes to say, don't overtrade things just for the sake of trading.

I thought it was a timely article so I linked it. It pretty much is also how I feel. Kenny too mentioned that 875 will not be broken through the downside so easily. Even I will buy the first bounce at 875.

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