This is bull’s chance to maintain the uptrend
John Palatine | February 10, 2010 | View Comments
In the past days the S&P 500 and DJIA bounced off the daily 200 EMA. Bulls emerged to rescue our uptrend before violating the November 2009 lows. Due to this rise, the big picture uptrend is still very well intact. We can therefore regard it as an important juncture if bulls really mean it seriously.
The conclusion is that we can expect a bounce here. The first challenge is awaiting us at the upper range of the downtrend channel from which we sold off yesterday afternoon. Breaking this can be an attempt to break the intermediary 1,100 resistance. Dropping below the 200 EMA, however, can result in some serious outcry.
Category: Stock Market