Prepared by Jamie Saettele, CMT
Former base channel supports are now resistance. In the near term, look lower as long as price is below 12824 (Monday high) towards the January low of 12623. The importance of the January cannot be understated and a drop below could culminate in a panic washout type of drop towards former resistance at 12480 (June 2010). As mentioned last week “there will be corrections (some sharp) along the way and our job is to short those rallies.” I’m treating conditions as bearish below 12824. Exceeding that level would shift focus to 12904 and probably offer another short opportunity in early June. 12780 is near term resistance.
LEVELS: 12904 12868 12824 12623 12480