Sunday, November 22, 2009

S&P 500 - momentum is fading

Weekly chart shows indecision represented by last weeks forming a tiny Doji with only a marginal new High. RSI & ADX both are losing steam.

I'm looking for first test of 1065-70 level and the critical 1025 below which the uptrend will signal retreat. Price is right at the middle of the Rising Wedge pattern so we need to watch for test of the Support or for a possible squeeze to new highs - the latter seems rather difficult to me.

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