Bulls Need To Make A Stand

by Zentrader, Benzinga Contributor

May 9, 2012 2:27 AM | 1 min read | Make a Comment

Lots going on here, and here are the reasons why this would be the logical point for the bulls to make a stand and we may get a relief rally here.

RSI is still strong near 39. It hasn't completely broke down and is still hovering around the 40 level.
Price bounced at key support levels.
50 day moving average is still trending up
200 day moving avg is still trending up (or at least sideways) if you look at it closely
Volume supports a minor capitulatory movement

I expect a brief rally (1-2 wks) where the RSI would likely find resistance at the 50 level. I am not bullish in the least and I'm looking for a good entry to short this per my timing signal but so far it's been difficult as the selling has been too fast to find a good reward/risk opportunity.

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