Thursday, March 26, 2009

03.26.09 - Testing Highs

SPX 820 has proven to be a strong magnet for this market and yesterday's late-day recovery smacked of "buying the dip" mentality from scared money managers still holding cash buying at obvious support. However, that very same level has also proven fairly stiff resistance thus far.

That said, certainly the more times we test it, the more likely it is to definitively break. A good 'tell' on the upward drift this morning has been Cumulative Tick, which has been moving steadily higher. The daily Average Price has also proven strong support, and Advancing Volume has widened its advantage over Declining Volume.

Support Lines:

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