Friday, January 23, 2009

01.23.09 - If this is a bottoming process...

...it's a darn painful one. For the n-th time we have retested the SPX 800 level and held on bad news. While I'd say lower prices are still in play, for today the upward sloping VWAP is proving strong price support and tick remains positive for the time being.

What I especially like seeing, is a flattening of the five-day moving average and positive action in the Financials [XLF +1.4%] and Semis [SMH +3.7%] on the day. Now we just need to break through that pivot, which has been upside resistance at SPY $82.64.

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