Strong overhead resistance continues to befuddle the bulls in the S&P (SPY) and the Nasdaq 100 (QQQQ). The bulls have attempted several times to breach the 139 area and without any success. Furthermore, today’s decline in the Nasdaq is a bit concerning going forward as the tech-heavy indice fell below an area of decent support without much of a fight from the bulls. Could this be the beginning of the correction that everyone has been anticipating? I think that there is a very good possibility because of the reasons I have stated repeatedly over the past few weeks. I would encourage those of you who are interested to read the November 6th post for more detailed information regarding the bearish indicators. Have a wonderful night!
RSI Wilder (5) for November 9, 2006
- SPY - 55.6 (neutral)
- DIA - 55.2 (neutral)
- IWM - 51.4 (neutral)
- QQQQ - 60.9 (neutral)
Andrew Crowder, Chief Investment Strategist, www.crowderinvestments.com