| |
| |
Technical analyst Chris Kimble, a dshort.com regular contributor, takes look at the S&P 500.
Chris comments: When support is broken in any asset class, often times the asset rallies to test if the old support line, which is now resistance, is a valid or strong resistance line. If it is, often times you can kiss that assets price "good-bye" for a while.
The 500 index broke below its 200-day Exponential Moving Average (EMA) line of late, which was support, now turning the 200-ema into a resistance line. Last Thursday, the index closed right at the 200-EMA for the first test of this line as resistance.
Now comes the huge resistance test for the 500 index. If the 200-EMA does hold as resistance, it could be viewed as the "kiss good-bye" suggesting much lower prices to come.
Big test at hand right now: Is this the "Kiss Good-bye" or a "Good Buy Kiss?" The patterns suggested to SELL BEFORE the worst May in over a half-century. If the 200-day line holds as resistance, the idea of "Sell in May and go away" might look smart as well!
|
|
