Wednesday, June 20, 2012

Wednesday Afternoon


I wanted to zoom out a bit and take a look at the daily chart of the SPX. You can see the high volume zone showing potential resistance at the 1360-1370 area. There are a few short term indicators suggesting we could pull back in the days ahead. The first level of potential support is the 50day SMA... currently at 1346ish... which also matches up to the futures gap from Friday at 1340ish. If the bears push below that, I'd expect the bulls to make a more firm stance around that 1320ish high volume zone marked on the chart.