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Tuesday, December 7, 2010

Tuesday Updates!!!

This is an updated chart that I posted yesterday showing the SPX approaching the upper Bollinger band, well this morning the SPX hit that band. Odds are good that the SPX will bounce-off this line. Also note how that the Bollinger bands are now going sideways, and not upwards, indicating slowing momentum to the upside. The SPX is now ripe for a decent sized pull-back/sell-off. Current support for this chart is the 20 day MA at 1201.80.
TNX, which tracks the yields on the 10 treasury Bond is one of the largest movers today, up 4.28% as yields break above the 3% level. If this continues expect mortgage rates to climb above the 5% level and throw another wrench into a depressed housing market.
Silver was on a tear again last night, making another new high at $30.75, but has since backed off and is currently at $30.365. The SPX has also come down off of its HOD.
*Stockcharts is having technical difficulties this morning.
Click here for a live, and updated chart!!!
6:56, Odds are looking good that the SPX broke up in the final 5th wave to complete this impulse wave up from the November 29th low with a band of resistance in the 1240 level from two different trendlines. The RSI on the SPX also is now back in extreme over-bought territory. This morning move should quickly retrace once the 5th is in.

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