May 24, 2012

S&P 500 Analysis after closing bell

  • We saw a bearish view with monthly chart yesterday. Weekly charts shows a possibility of trading bounce with Weekly oversold stochastic and 50 Week SMA. If 50 Week SMA does not get violated the weekly stochastic may give a trading bounce towards 1342 - 1350 levels.
  • Closing above 10 Day SMA should take price above 23.6% Fib line and 20 Day SMA as shown in 2nd chart.
  • This bullish move must start from the hour chart. Hour is trying to stay above 50 Hour SMA. For a successful up move price must stay above 1328.49. Price staying below 50 Hour SMA and falling below 1296 may lead to a breakdown.

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