Tuesday, May 29, 2012

Limited upside

The bulls made it five out of six today. Not bad! But looking at the S&P chart, this upside looks very limited. The number to watchout for, at least in my opinion, is 1340. It is a strong resistance and might prove to be a tough nut to crack. Add to that the steadily approaching MA(20) toward this level and MA(50) means the upside seems to be limited. As far as support is concerned, a break of today's low will mean that the bears are back in control. 

One can play it as a range bound market until any of the above mentioned levels are crossed. No point in trying to be a hero in a news dominated market. Meanwhile, from the watchlist posted this weekend, VHC was up almost 11% and CRUS over 7%. I hope some of you readers played these!

Take care and good luck!

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