W.R. Grace, Solutia on the Move
A week ago, I wrote in Columnist Conversation that a close in the S&P 500 index above resistance, at that time the 1225 area, could initiate a sharp and quick move higher, to the downtrend line on the daily chart drawn off the July, October and December highs in the 1260 area.S&P 500 -- Daily Source: StockCharts.com View Chart »
Today's intraday high is 1263, a nearly 5% advance from Tuesday's open. This retest has come on poor volume, about 15% below the 50-day exponential moving average of volume, and 20% below the 200-day average. Money flow is positive, however, and the accumulation/distribution line is moving over its 21-period average. There is triple-top resistance at the 1267 level and above that, the evening star high near 1287. But with a strong layer of support supplied by the 50-day moving average and the 1225 level, the S&P chart looks positive going into the end of the year....393 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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