- First chart shows SPX Weekly wedge, Price yet to hit the support line of the wedge. Current correction in weekly chart may get over only after price hitting the support line of the wedge. Bigger correction may follow if the wedge gets broken here.
- 2nd chart shows price with 200 DMA and the support level of 1250. Break of this Moving Average will push price down to 1250 level. So all this action may happen near the support line of the wedge and an up move may start from this area.
- For Bears Wedge and 200 DMA Breakdown will be a great event. But on seeing the price action it looks like 1250 may hold in the medium term.
- SPY 5 MINUTES CHART WITH SUPPORT RESISTANCE LEVELS
June 25, 2011
- All Indications are that this up move may continue.
- Next important resistance is at the 20 week moving average and 5604 level. 20 Week moving average is near 5560 level.
- Look at the last chart the weekly Bollinger band, Price hits and reverses perfectly.
- We saw the Bullish Engulfing But to be frank such a big up move was not expected. The bulls were swept away at least for one day. Bears may get their chance between 5560 - 5604 level.
- Weekly chart is showing a possible false spike out of a consolidation pattern this can be very negative for bears as false moves tend to give vicious moves in the opposite direction.
- Daily MACD and STOCHASTIC shows chances of this up move continuing for a while.
- S&P 500 WEEKEND UPDATE
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