Still Trying to Bottom
06/02/2010 9:54 am EST
As I discussed last week, the daily technical studies continue to suggest that we are in the process of forming a short-term low. Trading remains choppy as Monday’s rally after the early selling was positive, but the late-day selloff was negative. Futures are up early Tuesday and the positive divergence in the RSI needs a move above the recent highs to confirm a low. A close back above 1097 would be positive with the 50% retracement resistance at 1128, while a break below 1055 would be negative.
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.