Sunday, July 24, 2011

Markets at Resistance in a Range

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The Dow 30 is at a major horizontal support and resistance line going back a few years. Also last month price broke the uptrending channel from 2010-2011, and has now come back underneath it to touch from the bottom. There may be resistance here to further upside.

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The S&P 500 is at a resistance line as of Friday's close. So the market is either likely to pull back here or to break out of the range to the upside.

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Bearish divergence is present on daily stochastics and shorter term RSI and MACD. Looks like there will be some consolidation at least before a larger move one way or the other.

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