02/01/00 SPX Corp (SPW)
Points to watch: SPX
Corp rallied during the short-lived runup by cyclical stocks in early
January but has fallen sharply over the past 2 weeks and is now
approaching critical support.
SPX
broke below Gann support at 78.5 on January 25th which had provided
support since late November. The stock fell 1.06 yesterday to close at 74,
its low for the day. Support is at 73, the November 24th intraday
low, and a level which also provided support last May. Additional
support is at 71.3, the 50% retracement of the stock's late March
1999-July 1999 rally.
Long and
short term technical indicators continue to deteriorate: daily MACD gave a
sell signal on January 27th, daily OBV turned down on 1/19, daily
stochastics has fallen from overbought territory to under 60, and weekly
RSI and stochastics both turned down in July.
A
sell short signal would be given if the stock fails to hold the support at
71.3. After a break, the next downside support would be at 65.8, 62,
and 59.2. Resistance is at 79.3 and 81.4.
