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BAC Downtrend Still Intact
Apart from the fact that Bank of America (BAC) is up 3% the day after it hit a low 4.93 yesterday, the lowest level since March 2009, let's notice that current strength has not inflicted any meaningful technical damage to the nearest-term downtrend -- at least not yet.
BAC must hurdle and sustain above 5.23 to inflict preliminary technical damage. However, upside continuation that climbs above 5.29/30 to hurdle my 30-period exponential moving average is needed to really get my attention on the long side of BAC.
That EMA tracks directional price movement very closely, and in the recent past has thwarted upside continuation on all (failed) rally efforts. Inability of BAC to hurdle the 30-period EMA will keep me neutral to bearish.
