Bo Yoder´s S&P update

The S&P 500 (ETF Proxy – AMEX:SPY) has bounced away from its lows and is in the process of forming a lower high. Our forecast is that price will wriggle a bit but move higher up into the reversal zone drawn on the chart.  A retest of the lows is highly likely, so my posture is one of stalking a short in the reversal zone.

My watch-list this week is full of possible inverse head and shoulder patterns that are currently at the “head” stage.  These setups are likely to mature right as the market begins to challenge resistance.  This will allow us to measure power levels and get a better odds picture about the likely success or failure of these patterns.

Intel Corp (NASDAQ:INTC) hit stop loss orders as price fell below the lows of the red zone. Time to move on and wait for the next opportunity.

 

Denbury Resources (NYSE:DNR) continues to act with relative strength, as price challenges the highs of the recent range.  Our forecast is for price to continue to push higher, as a new uptrend is created.

Bo Yoder

RBJ Financial