Support Levels to Watch
05/17/2010 9:48 am EST
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.
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.