- S&P 500 hour chart is trading in a range of 14 points. 1091 - 1105.
- Right now it is trading close to the upper end of the trading range.
- Index may pause around 1105 region and may be followed by a correction. Indicators are also in the overbought zone in hour chart.
- If 1105 is broken convincingly we can see a rally of 10 points.
September 8, 2010
- S&P 500 futures went down till 1086 after breaking the support line.
- 1085 area has given support for the index.
- An hourly close above the trend line shown in the chart will be positive for the index.
- The above chart is a continuation of the hourly analysis shown in this POST.
CHART - III
- NF Got resisted near the top of the pattern is now moving towards the support line.
- Nifty futures is getting close to the resistance line of the broadening pattern
CHART - I
- Again its one of those broadening patterns this one in 15 minutes chart.
- Remember we have one going in the daily chart which was posted today.
- Violation of support or resistance lines can give good direction for the short term.
NIFTY DAILY CHART
NIFTY WEEK CHART
- Nifty daily chart is looking positive with the index closing above the broadening pattern. Now the index should trade above 5600 for the bullishness to continue.
- Any dip below 5600 will be negative.
- Nifty's weekly line chart is showing a breakout above the resistance line.
- This week should close above 5550 for the breakout to sustain on closing basis. If nifty comes back and closes below 5550 we may not have a breakout on weekly closing basis.
- The worst scenario for bulls would be a whipsaw in weekly chart which can have catastrophic results like what we had back in 2008.
- S&P 500 has closed the day below the crucial 61.8% Fib level.
- But the index is still trading above 20 and 50 DMA. This should keep the bulls interested.
- 50 DMA is at 1082 if this level break the correction can be big.
- The daily chart also has a negative sma cross, 20 DMA is below 50 DMA.
- Today bears had an upper hand but i still feel that both trades are possible from here. clarity should emerge soon.