Today’s market move is probably driving the reactive price momentum chasers a little squirrely. Don’t let them distract you. This market is trading in a proactively predictable range.
Despite all of those who shorted the fear associated with a “Moody’s downgrade of Greece” (yes, that was a lagging indicator) last week clamoring for cover, the immediate term TRADE line of resistance that we gave you in this morning’s Early Look has held up pretty well today at 1122.
Importantly, what was the intermediate term TREND line of resistance in February has now become an important line of support down at 1103 (thick green line in the chart below). Use that as your buy/cover zone for any sales that you have been making into strength in the last 48 hours.
Keep your head up and on a swivel,
Keith R. McCullough
Chief Executive Officer