Friday, January 22, 2010

01.22.10 -Dipsey Doo

The SPX slid under its 50-day moving average and found support at the round 1,100 mark.  However, price snapped back quickly at that point and we are currently running in range-day fashion with Up and Down Volume just about evenly matched, Cumulative Tick running sideways, and the VIX flattening out just under 23.

Feels like more than a 3.5% correction though, doesn't it!  Speaks to how rare these 50-dma visits have been during this extended rally.  Short-term, we are oversold -- Monday should tell us a lot about just how broken this market really is.  For now I have to give the market the benefit of the doubt and have added to long exposure on the dip.

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1 comment:

Anonymous said...

I hope you are right. I hate to see it give much more. Seem oversold to me.