June 22, 2011

S&P 500 Daily and Hour chart analysis

  • SPX Daily closed near 20 day moving average.
  • SPX Hour is approaching 200 Hour moving average.
  • If price gets resisted here we may see a correction.
  • For bulls price should sustain above these Two crucial levels.


  • If price breaks the dotted trend line then bulls can reach 5330 level that is the resistance line of the channel.
  • Further down move will happen once price breaks the hour channel.
  • This consolidation should be considered as a bearish one since its happening after a sudden fall. So unless a breakout above the channel happens bears will be in control.

NIFTY Intraday Update

  • Intraday up move towards the top of the range in 5 Minutes time frame May happen If the support line shown here is held for today.

NIFTY may retrace to the breakdown level.

  • Stochastic indicator shows the chance of an extended bounce.
  • But the breakdown level of 5350 - 5370 level will be tough to conquer for bulls.
  • Major Fib levels too showing 23.6% Fib level coinciding with the breakdown level.
  • So for a bigger move to happen nifty should close and sustain above 5371 level.