March 25, 2011

SPX Breaks the resistance line

  • SPX Four hour chart has given a breakout above the resistance line.
  • Indicators are showing overbought levels.
  • But as shown in the second chart overbought reading can go both ways.
  • In a strong market indicators will stay overbought as price keeps moving up.
  • Yesterday SPX broke its 50 day moving average. As long as price stays above this crucial moving average Bulls are safe.
  • S&P 500 CLOSES ABOVE 50 DMA

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