Wednesday, December 14, 2011

Today's importance

Another sell signal given today as weakness persists within the marketplace. The SPX index daily chart managed to produce a bearish cross on the MACD indicator. This particular sell signal validates the early warning of lower successive histogram bars of the previous 3 sessions.  Today's close at 1211.82 which stands close of the 38.2% Fibonacci retracement level. Prices falling from this level would meet a confluence of support at the 50% retracement and trendline drawn. A confluence of support is an established level based on several points of support.  I expect prices to find a meaningful bounce at 1180ish area before resuming its current downtrend. I'll have more posts later.

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