Earlier today I noted that prices had moved below 120 which is a technically important level. Prices increased from below the 120 level to above the 120 at the close. They did this on incredibly high volume, which is technically a good sign. However, note the following:
-- Prices are below all the SMAs
-- All the SMAs are headed lower
-- Shorter SMAs are below longer SMAs
-- Prices are below the 200 day SMA
Bottom line, this is still a pretty ugly chart.
The main issue gong forward is AIG. While there have been plenty of rumors, nothing firm has emerged. When that is solved, I would expect a relief rally.
