Thursday, June 16, 2011

Traders having 200SMA fun

First we had the 200SMA test of the $QQQ a few days ago:
It worked well for 2 days and then failed miserably.
Today we had even more fun with the simultaneous test of the 200 SMA on the $IWM and the $SPX.    Click to enlarge:

SPX support held perfectly:

It’s all too neat and clean for us to think that this is THE bottom but it should be good for some short-term fun.     If the bottom is indeed real then expect a plethora of long set-ups to emerge in the next few days.

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