Monday, May 16, 2011

Testing Support At The 50sma

The SP500 and the QQQs are testing support at the 50sma.  As frustrating as this correction has been the fact remains that the April 18 low has yet to be violated, which means the intermediate trend remains up.  Wave a = wave c for the SP500 at 1318.  We may see more selling into that zone as the NYMO heads into the oversold level.  I will be looking for a reversal tomorrow or Wednesday to finish this correction.  However, a break of the April 18 low would suggest that a retest of the March low is underway in a flat correction.

No comments: