June 11, 2011

SPY Oversold and continue to Fall

  • SPY Hits the lower Bollinger band in weekly chart.
  • Stochastic and RSI are showing extreme oversold readings.
  • RSI has gone below 30% after August 2010.
  • But the free fall may end only if we see a consolidation reversal pattern. a V shaped recovery is also possible.
  • So Bulls can expect some relief from 125.28 level. This is the recent prominent low and the 200 DMA is hanging around here. So bulls can expect a reversal to star from this level.

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