March 5, 2011

SPY Weekend Update

  • Trend line in weekly chart was tested But price did not sustain below the trend line. If it gets tested again we may see a bigger correction.
  • Break above 134.70 will extend this bull run
  • Daily chart is showing a possible triangle shaped consolidation break from this can give good direction.

DIAMOND pattern of S&P 500

  • Diamond of SPX mentioned below on 5th of this month has given a breakdown in favor of bulls. Now price should sustain below 1294 for bears to extend gains.
  • Diamond pattern of SPX in Four hour time frame
  • Diamond breakdown at the top of the trend can give good gains for bears.
  • This one if breaks the support line has to break and sustain below 1294 for the pattern to work properly.
  • Breaking above 1333 will favor bulls.