Monday, November 02, 2009

Technical Picture - Support Zone

The 60 minute timeframe of the SPY above, shows that we started to bounce off of the $103.00 base (blue box) of the October lows. We also see some positive divergence of the MACD and RSI to lower prices. This usually foreshadows a bounce. The price action of the last few days looks like a bullish wedge is developing. However, I'm not sure if we will get much of a bounce given that the FOMC is on Wednesday. So the bears still have time to try to push price to the lower end of the support zone at $102.00.

Some idiot at Citigroup downgraded RIMM from a buy to sell and revised the target from $100 to $50. WOW, talk about about kicking someone when they're already down. Anyway, that nonsense gives us a hammer-like stick on high volume and suggests a mini capitulation within a longer downtrend.

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