Off the Charts
The S&P opened higher this morning, but within the first hour had filled that gap. Just as traders started saying "here we go again," stocks reversed back to the upside to finish above Friday's high. The S&P lost its short-term bullish momentum early last week when it broke down through its 21-day moving average, which coincided with a break of the accelerated uptrend. Friday, the index closed right on its next significant support level, the 50-day MA. Monday we traded right back down into that level before bouncing.
The question traders will be asking now is: Was Monday's move just an oversold bounce, or can the rally resume? Right now, strong cases can be made on both sides. From the bullish side of the argument, which we have taken most often in the second half of this year, the pullback has been contained by several key levels: 1) the 50-day MA, 2) the previous breakout level (from April 2) at 1422.38, and 3) the more gradual uptrend since the June 4 lows....709 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.