June 2, 2012

S&P 500 Analysis after closing bell

  • SPX trading below 20 Month SMA will attract bears towards the monthly trend line shown in the same chart. For avoiding a bigger fall bulls must get back above 20 month SMA.
  • Daily chart too turned completely bearish after price traded and closed below 200 Day SMA.
  • Only hope for bulls is the falling wedge pattern. Price is approaching the support line of the wedge. For this patter to work in bulls favor price has to get back above 200 SMA soon. If the down move continues wedge pattern may fail.