June 1, 2013

FACEBOOK Weekend update

  • Oversold bounce by Facebook bulls getting resisted at multiple resistance levels.
  • Broken 200 Day SMA, 23.6% Fib level acting as resistance.
  • To avoid a bigger fall price must get back into the pattern shown in 3rd chart.

S&P 500 Weekend update

  • SPX Closed below 20 day sma.
  • Next crucial support at 50 Day SMA. Daily MACD shows a sell signal. 50 SMA at 1600 has to break for the sell signal to gain strength further.
  • Weekly chart shows weakness after negative divergence. Weekly RSI falling below 70% line will help bears to extend the down move.

SPY Chart update

  • SPY Near the apex of the triangle pattern. 
  • Second chart shows four hour time frame with the shooting star pattern. Shooting star or inverted hammer would look strong if price starts to trade below 163.95.
  • Triangle given an upper breakout will weaken the bearish case.