Support Levels to Watch

05/17/2010 9:48 am EST


Thomas Aspray

, Professional Trader & Analyst

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The selling on Friday was not surprising, but this week’s action will be important. The rising 200-day MA and important support for the Dow is at 10,200 with the 38.2% support just above 9400. The daily RSI3 is already back to oversold levels but shows no signs yet of a bottom (see circles). The weekly chart of the S&P 500 shows the 40-week MA at 1095 with trend line support at 1050. The major 38.2% support is in the 1010 area. The RSI3 is declining, but is not yet oversold.

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