Market Analysis for Mar 17th, 2005

For today's Mid-Day Minute, Mike writes: As we approach the end of this week, let's have a look at the weekly chart of the SPX, which is heading for its second consecutive down-week. Notice that the decline this week has sliced below the nearest trendline- broken around the 1200 level, and which triggers a new downside target into the 1160 area. Notice also, that weekly RSI registered TWO non-confirm- ations of new price highs- at the Jan. peak of 1217.90, and at the March peak of 1229.11. One weekly non-confirmation would be enough of a warning to suspect some turbulent downside action is ahead-- BUT TWO of them really must be taken VERY seriously-- especially now that the RSI also is pointed straight DOWN. Given the negative juxtaposition of price with RSI on a weekly basis, an 1160 target may be too conservative. Perhaps we should begin looking for 1140- in the vicinity of the 1 year MA. MJP 03/16/05 1:30 PM ET (1191.17)

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