Yesterday the S&P 500 hit a high of 1367 before retreating and finising down on the day. Looking at the trendlines, the index is consolidating at the top of its narrowing range and RSI has been above 70 for much of February.
With decreasing volume and recent underperformance from the Russell 2000, a correction to the low 1300s may not be out of the question. With that in mind, the uptrend we have seen since late November will look attractive to all those interested in buying the pullback.
Wed, February 22, 2012
by David Boland