Thursday, February 11, 2010

02.11.10 - Range Contraction Resolved

The three-day range contracted to a fine point around the 5-dma in triangular fashion, and finally resolved to the upside.  Note how the two converging trend-lines acted to simultaneously confirm support (bottom line) and a break-out (top line) all at once here ("Double Jeopardy").  At the mid-day, internals are very supportive for a continuation trade into the p.m. session, although I'll grant that SPY R1/10-dma at $107.80 is providing strong resistance and longs should likely be protective of their profits.

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