Can or Can’t
May 26th, 2009 at 3:43pm · 1 Comment
The net-lines give us information when prices can close through them, and they give us info when prices can’t penetrate them as well. On Friday, I mentioned how the earlier net-lines at 895.50 and 897.25 should provide strong resistance – Friday’s rally stopped at 895.50. This morning’s decline failed to penetrate a new 135 net-line at 877.75, and that level promptly became strong support. Right now, 923.50 is an active buy net-line on the daily chart. With the upper 135 channel at 922, this area is key. I expect prices to get pulled up to that level and likely stop there. Stay tuned.
Tags: General Market Commentary · S&P 500
1 response so far ↓
1 Webhand // May 26, 2009 at 5:19 pm
Chris, how do you calculate net lines? Also, do you have a longer term outlook on the long bond?
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