July 6 2009 – 888.0 support tested…

ASX Commentary

July 6 2009 – 888.0 support tested…

Tue, Jul 7, 2009

The S&P 500 tickled the all important 888.0 level but closed higher at 898.0. There are a lot of people looking at this exact level so I’m wary of a false break to the downside. If too many people are watching then you can bet the crowd gets it wrong more often than not. If we’re to really get some true downside happening we’d need to see a strong acceleration in momentum, none of this meandering. For all its worth we’re still stuck in the range albeit probing the lower boundary. Whilst I favour a downside move it could still go either way.

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Nick Radge - who has written 899 posts on The Chartist.

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