Sunday, July 19, 2009

SPXA50 Chart, Stochastics current condition

Hey guys, looks like it will be another late night tonight to see if I can get any good positions for tomorrow. Here's some quick charts to think about.
First is a chart on SPX, daily, look at the stochastics area. Last week I made a reference to it being oversold state, with a bullish cross and look at what happened last week! Now with the rally if you look at the indicator currently you will see it is in an overbought state and looking for at least a pullback. Now we need to see a cross for it to be bearish but it is something to keep in the back of your mind.
Last chart is a reading of how many stocks in the S+P 500 that are trading above their 50 day moving average. Another reading that a pullback could be on the way, but keeping an open mind regardless!