Our friend SPY (S&P 500 etf) is a beautiful creature. I have been watching its relative strength via the RSI (Relative Strength Indicator) and so far it has held up. In July 09, it briefly dip below 40 but quickly came back up. In November 09, it did turn back from 64 instead of going to 70. The day of record close 11-25-09, it was 61.57. If it breaks below 40, it will mean that whatever Bullishness there was in the last 8 months has come to an end.
The Fibonacci fan on SPY looks like as shown in the chart above. If the current fan line at 50% is breached, there is support at 107.50 but major support is much further down at 103.12. In spite of the seasonal bullishness and the impending Santa Rally, the risk seems to be on the downside.
1 comment:
hello... hapi blogging... have a nice day! just visiting here....
Post a Comment