Off the Charts
A day to take notice. The S&P 500 and Nasdaq both gapped up to new 52-week highs this morning but closed the day sharply lower. The S&P closed the day down 0.35%, the Nasdaq down 0.29%, and the Dow down 0.51%. What will today's reversal lead to?
It was an outside reversal for the S&P as it pushed above yesterday's high and below yesterday's low. Today's reversal at highs is a reason for traders to clean up excess longs, but it does not mean the macro trend has changed. The S&P has been riding an accelerated uptrend since Aug. 3. A break of that uptrend comes into play at around 1407. A move and close below that level would be more concerning than today's outside reversal. A key level of support that could get tested if 1407 does not hold is 1390. A test and hold of that level would still keep this summer's uptrend intact....654 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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