Friday, January 2, 2015
S&P 500 Futures approaching temporary support @ the 50 dma (2034)
After failing at the top end of a well defined range, futures have slipped and are close to testing support at the 50 dma @ 2034 (red line above). I'd use a pause / bounce there to add to shorts and lighten up on longs.
A lot of people have been waiting for the clock to turn to 2015 to take profits and delay paying the tax man, so we're probably not going to be done with this pull back in the near future.
I'd like to see the RSI touch the yellow line in the bottom of the graph (30 level) before thinking about longs. A move to the all important 150 dma @ 1981 (pink line) would get us there.