The SPX made a normal bounce after it made half of its downmove. The fact it stooped exactly on the 20 day MA helped as some market participants seem to give that a value. The other fact is that we have quite an open interest in SPX 900 options and we might see attempts to push it up there. NDX could not close the gap / lap it made 2 days earlier which confirms the downside direction but we need to days confirmation as well. The 870/5 support line which was equal with the 20 day MA has to be taken out to reach the 830 target thereby the 800 level will hold this corrections extreme potential to the downside for now as it marks the channels support.
Friday, May 15, 2009
SPX tech update
The SPX made a normal bounce after it made half of its downmove. The fact it stooped exactly on the 20 day MA helped as some market participants seem to give that a value. The other fact is that we have quite an open interest in SPX 900 options and we might see attempts to push it up there. NDX could not close the gap / lap it made 2 days earlier which confirms the downside direction but we need to days confirmation as well. The 870/5 support line which was equal with the 20 day MA has to be taken out to reach the 830 target thereby the 800 level will hold this corrections extreme potential to the downside for now as it marks the channels support.
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