Monday, August 24, 2009

Nearterm Resistance?

Took a look at the US Home Building Index ($DJUSHB) along with the Transport Index ($TRAN) up against the $SPX & $SPXA150R. Interesting, that 3 day 25% bottom-to-top move in the $SPX last year and the Fibonacci levels? Bottom line 1,050 level on the S&P should be pivotal this week. I expected a pullback several days ago, got a headfake and this rally continues to have legs. BUT, a 10% correction could come at anytime. Suggestion, take some profits and have some cash, to buy at lower prices seems to be in order.

*click on chart to enlarge image

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