The SP500 Index (SPX) had another low volume pullback today. The interday charts look bad but the daily chart remains in position to move higher. The Fed is meeting which always drops the volume and price action. At any rate, the price action is not looking too bad. I don’t think we can constructively deal with a down day tomorrow though. It is possible for another down day with price remaining about the last swing low at SPX 1234. But that would be four days down and not too encouraging.
Chart courtesy of Stockcharts.com
Price needs to take out the recent highs with another continuation day and then blast higher before we become totally overbought. I don’t usually worry about moving averages but they do serve as resistance to price - going either way. I would like to see price slice right through the 50dma and move to the 200dma quickly. That would most certainly cause a pullback to the 50dma again. This is just on my wish list and not a prediction. But if it does do that it will make trading much easier.
Tags: Pullback · SP500 · VolumeNo Comments
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