Although small and midcap stocks were able to surmount their February peak, large cap stocks haven't been able to do so. Chart 1, for example, shows the S&P 500 Large Cap Index backing off from its February high near 1340. That's a normal spot to expect some profit-taking to appear. In addition, the SPX is in danger of slipping back below its 50-day average. A decisive close below that support line would signal that the rally from mid-March has run its course, and that the market may be entering a period of consolidation between its February high and March low. The green line is the 100-day average which halted the March decline. That's another important support line to watch. Needless to say, it's important that those support levels hold in order to prevent a more serious downturn.
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发表于 2011-4-12 21:13
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