Weekly Trend Still Positive

08/31/2009 9:19 am EST


Thomas Aspray

, Professional Trader & Analyst

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Stocks were expected to open lower on Monday after overseas markets were down. The weekly RSI on the S&P 500 is still positive as it has not formed any divergences and is well above key support. The RSI stands at 64—not that overbought—as it was close to 80 in early 2004. This does not rule out a one- to two-week pullback.

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