Option Millionaires

[silencedogood2011]

Evening Mikey.

Why I am looking at the 50Dma is the elliott wave theroem. On the daily you will see each successive wave downward used the 50Dma (or very near) to gather more support for the next leg up. Now we have Moon gravity between the 50Dma and the actual price an overheated RSI, and an ADX flipping negative.

Going back to June 2011 you can see where the RSI heated up to the 70 line and then turned going to the 50 line with hardly any middle ground. This is where I see a pullback to 14700.

Major Money will hover at the 50Dma for a nice pickup going into 4th Q. 3rd Q is going to get very ugly once the FED meeting in July spells out the path of ending QE.