Wednesday, May 23, 2012

Market bounces back as dollar falls.

Today the emini s&p futures bounced back to the 1180 level closing just below as the dollar fell. Below is a 30 min chart of the past two and half weeks. You can see an established trendline that had been working as support. But as of  yesterday and today this trendline has been resistance since the break below. This trendline is also converging with the 1180 area of resistance we talked about yesterday. Bulls will try to break this even more important 1180 area to the upside, as the bears will have to move the market below yesterdays low around 1155 for a more significant pullback.



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