Textbook Pullback Opportunity for Stocks?

Discussion in 'Trading' started by MKTrader, Nov 30, 2007.

  1. The day is far from over (about 11:40 AM EST), but if you look at an S&P 500 daily chart, it looks like we could have a short-term top leading to a nice pullback opportunity...especially for those of us who missed buying in the low 1400s.

    Just like November 14, there appears to be very strong resistance at the 200-day MA (1483).

    If the S&P closes below the 200 MA, it will be a textbook double-top. It will mean both days (14th and 30th) spiked to about 1490 but failed to close above 200-day MA.

    What's more, there's a gap around 1425-1430 just waitin' to be filled below.

    Thoughts?