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Buying On Rising Layoffs
Please click here for an enlarged chart of SPDR S&P 500 ETF Trust (ARCA:SPY) which represents the benchmark stock market index S&P 500 (SPX).
Note the following:
- The chart shows that the stock market has vigorously risen from the recent pullback.
- The chart shows that RSI reached oversold levels during the recent pullback and now has risen to touch the lower band of the overbought zone. Historically, this setup leads to more stock market gains.
- The chart shows that the volume during the recent rise is not heavy. This indicates lack of conviction.
- The chart shows that the stock market is now in the resistance zone.
- In The Arora Report analysis, stops of the short sellers are right above the resistance zone. If the stock market rises further, Wall Street’s hunt and destroy algorithms will…
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