06.21.2011 -- Back in the Bollingers

As suspected yesterday, we looked ready to bounce and only needed a couple more points to confirm and we took off today, breaking through the bottom of the bollinger bands and heading up towards the middle.

On the daily chart, the MACD, Stochs, and RSI are all now on a buy, and there's lots of room left for movement north.

June is EOQ. (end of quarter), so we are now dealing with daily signals all on a buy, end of the month and end of the quarter. Window dressing galore. They'll want to rally the heck out of this pile and make this Q look like only a slight down tick on everyones 401k statements.

New highs are possible, but even if we do, it's all still part of an ongoing topping process.

Key levels for tomorrow on the upside that might see some resistance;

1302 is the middle of the bollingers, considering we are short term overbought, i expect that to cause at least a pause.

Then we have a cluster in the 1316-1320 that contains both the 100 and 50 day moving averages. That area will provide strong resistance.

After that we have the top of the bollingers at 1328ish. A move past 1330 will likely send us to new 52 week highs.

so in short, 1302 (weak), 1316-1320 (Strong), 1328-1330 (medium)

Here's the chart;

GL

CJ