October 9, 2010

DAILY CHART
  • SPY daily chart is showing negative divergence with the hlep of the RSI indicator.
  • But unless the price confirms, the negative divergence can last for weeks without giving any results 
  • 117.60 levels seems to be a resistance area as 78.6% Fib level also lies here. So one can see a  move towards 117.60 levels next week and a pause there to decide the next direction.
  • EURUSD: TREND IS YOUR FRIEND

  • Dow Jones has closed above the all important level of 11000
  • Next target and resistance for the index comes at 11200
  • The daily chart shows the strength of the trend with just one close below the 10 DMA from 10160 levels.
  • S&P 500 ANALYSIS AFTER CLOSING BELL

  • Daily has closed above the trading band of 1150 - 1160.
  • Trading well above 10 day moving average.
  • Weekly chart is also looking bullish after the successful break of 1150 resistance level. Closing too is near the high of the week giving optimism for the bulls.
  • Next likely target for this index is 1210 there will be some resistance near 1170 levels.
  • BROADENING PATTERN OF S&P 500

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"All through time, people have basically acted and reacted the same way in the market as a result of: greed, fear, ignorance, and hope. That is why the numerical formations and patterns recur on a constant basis."
—Jesse Livermore