Tuesday, January 6, 2015
S&P 500 Futures bouncing off the 150 dma @ 1983.
We highlighted the 150 dma Friday as a level of support. Well, we're there. Today's low of the day = 1984.25 (pink line above in chart). The RSI got to an oversold level of 35 as well.
Nothing has really changed from a news flow standpoint. There have been no external catalysts besides tax selling and the oil disruption. In other words, no new "uncertainties".
So we buy 'em here. If by chance we pierce the 150 dma, the algos should kick in and initiate their buy programs and close us above that level.
2012 seems like a decent first target.
The 50 dma is resistance @ 2036 (red line).
The 200 dma is further support @ 1955 (yellow).