- 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.
- DOW JONES BREAKS 12000
- Stochastic indicator shows possibility of an extended correction.
- But there are multiple bullish possibilities which will happen only if 5440 - 5480 level is protected on closing basis. Otherwise the recent lows may get tested again.
- Price had no drastic change last week But closing below 5500 will give comfort for bears.
- A Gap down on Monday may give a buying opportunity.
- DOW JONES BREAKS 12000
- Dow Jones closed below the important Psychological level of 12000.
- Dow Jones daily chart shows a trend line break and it closed 172 points down.
- If Dow does not change the pattern it will soon test 200 DMA.
- Hour chart shows a miniature version of the death cross. But it is very effective for bears.
- Price not able to keep its head above 50 Hour moving average.
