Wednesday, December 11, 2013

S&P 500 Index forming potential bearish divergence as of 12/10/13 (Tuesday)




SP500 is forming potential bearish divergence as shown in the daily chart. A break below the 1779.09 swing low is needed to confirm it.

The 20-day MA at 1795.55 has been supporting the minor pullbacks since last November.

Therefore, the 1795/1779 support area is key.

While this support zone holds dips, there is scope for new highs.

If this area is broken to the downside, then the 50 day MA at 1756.48 is the next support. That is about a 3% pullback from the 1813.55 high.

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