August 26, 2010

S&P 500 Analysis after closing bell

  • S&P 500 Index closes the day with 3.46 points or 0.33% gains
  • S&P 500 is trading in a down trending channel as shown in the first chart. So bears can hold on to their shorts until the upper trend line of the channel is not breached.
  • The index also had a falling wedge pattern which broke in favour of the bears yesterday. But in the final hours of today's trading there was a pull back towards the broken area of the wedge casting some doubts into the minds of the bears.
  • But for me the most important chart is the third one. See how 1050 is acting as support on closing basis. So if this area breaks in the coming sessions on closing basis, next target is around 1020. For now 1050 is acting as good support.

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