SPY - possible turnaround level (March 09, 2009)

SPY is approaching a possible intermediate bottom at around 64.73 - 65.27. That happens to be slightly lower than the down trend channel.

I think any move up on Monday should be treated with caution and you should take some profits as we get nearer to the top of the channel. So do keep your positions smaller until you see a confirmation of any change in trend. The top of the channel happens to be SPY - 70.28

I expect a possible correction on Monday morning due to an overbought RSI condition on the minute chart. As usual I keep no biases....the market usually does things in a less obvious way.





One thing for sure, a rally is coming....so do keep your eye on the financials.

My watchlist:
SPY, GS, OIH, GLD, XOM